Sebi questions Raymond over real estate deals

Sebi has written to Raymond questioning its real estate agreements for JK House and an Alibaug property used as a guest house

Mumbai: The Securities and Exchange Board of India (Sebi) has written to Raymond Ltd questioning the textile maker’s real estate agreements for JK House Ltd and a property at Alibaug used as a guest house, said three people with direct knowledge.

The regulator has also questioned whether the firm made any related-party transactions that were not reported to shareholders after Sebi’s Listing Obligation and Disclosure Requirements (LODR) norms came into force in September 2015, these people said.

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“This is the same old issue that is being referred to more than a month ago where we stated that Sebi had sought certain clarifications which have been duly addressed and we are compliant with all regulations. Since there is no new development in this context and the matter is old and already reported, this query from Mint does not merit any response,” said a spokesperson for Raymond in an emailed response.

An email sent to Sebi on Friday was not answered.

The markets regulator had first sent some queries about JK House, a 13 June Moneycontrolreport said. Subsequently, the regulator had again written to Raymond in August, one of the people cited earlier said.

In its first letter to Raymond, Sebi asked for the agreement involving JK House, where members of the promoter family are involved in a legal battle over the thwarted sale of four redeveloped flats. According to a 2007 agreement, these flats were to be sold to Singhania family members. Raymond shareholders rejected this proposal after the firm’s board put it for approval earlier this year after proxy firms pointed out that the sale price was at a deep discount to current market rates.

Subsequently, former Raymond chairman Vijaypat Singhania and his cousins Akshaypat and Anant Singhania, approached the Bombay high court against Raymond and Pashmina. An arbitration is underway.

The second Sebi letter questions transactions related to the Alibaug property, its lease deed, rental agreement between the company and its subsidiaries—Pashmina Holdings and Avani Agricultural Farms Pvt. Ltd.

The agreement was to use the Alibaug house as a guest house. Originally, the property was with Pashmina Holdings; later it was sold to Avani Agricultural. In 2013, the property was let out to Silver Apparel Ltd, another wholly owned subsidiary, Raymond said in its response to Sebi queries. A copy of its reply has been reviewed by Mint.

“Raymond’s expense towards Alibaug house on the company’s books could be in violation of Sebi listing regulations and norms towards related party transactions. The multi-layered agreement and details were not shared with shareholders,” said the person cited earlier.

“Appropriate disclosures...have been made in the Annual Reports of the Company from time to time,” said Raymond’s response. “Further, we submit that the Company has not entered into any material related party transactions since the coming into effect of the Listing Regulations.”

Raymond’s response did not say whether this transaction was shared with shareholders.

“Sebi is examining the responses. In addition, Sebi has also taken information from stock exchanges pertaining to Raymond—this includes its financial numbers, corporate announcements and Raymond’s shareholding pattern for the past five years,” said another person from the three cited earlier.

“Everyone is questioning the rental agreements, however this is a subject of market conditions. Any property of a listed company belongs to shareholders and not to any specific class of shareholders,” said J.N. Gupta, co-founder and managing director of Stakeholder Empowerment Services, a proxy advisory firm.

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Home buyers of Noida's IRIDIA project meet DM over land acquisition dispute

Home buyers of Noida's IRIDIA project meet DM over land acquisition dispute

Homebuyers of stalled project IRIDIA at sector 86 Noida today took out a protest march and submitted a deputation with the district magistrate of Gautam Budh Nagar, BK Singh seeking his intervention in resolving a long standing dispute related to the land acquisition of the project.

Launched in 2012, IRIDIA was established on an abadi land purchased by Kaveri Sahkari Awas Samiti society, from local farmers. The project was built by engaging private builders, Horizon Buildcon. The project was stalled by Noida authority as it challenged the land acquisition process by the promoters who had directly purchased the plot from farmers.

The project which has over 720 flats, has about 600 buyers who have paid up over 80% for their flats. The project was approved by the State Bank of India. "We have asked the district magistrate to help us resolve the matter. In a memorandum sent to chief minister Yogi Adityanath, we have demanded possession of the project post completion or return of investment with interest," Sukhdev Singh, a buyer, said.

Commenting on the meeting, DM, BK Singh said, "The buyers have given us a representation of the issue. We will take it up with Noida Authority," Singh told TOI. "Following Noida authority's objection, the matter has been reviewed by the Allahabad High Court. The high court in an order in 2013 has asked the state government to review the issue since all maps were sanctioned by the district administration. The decision for the same in pending at the principal secretary's office in Lucknow. The project has been on a stand still since September 2014," Pankaj Lunia, legal spokesperson for Kaveri Sahkari Awas Samiti, the promoters of the project, said.

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Sumer Builders's 12 properties may be attached

The Bombay High Court has issued a warrant to attach Mumbai-based Sumer Builders's office and its various projects in the city.

On September, Chief Justice Manjula Chellur in an order observed that 12 properties of Sumer Builder should be attached by the Sheriff of Mumbai so that the real estate company complies to issues raised by Sumer Trinity Tower residents at Prabhadevi.

The residents had moved the court to get leakages in their apartments as well as other areas of the building fixed apart from rectifying elevators, completing lobby, recreation grounds, tennis court and construction of club house, among other building amenities. The overall cost to comply with repair and rectification works sums up to over Rs 30 crore.

Among other things, the developer is yet to complete the construction of rehabilitation component at its Prabhadevi Project. As per the statutory construction terms, Sumer Builders has also been directed to hand over surplus area of around 2,215 square metre to Maharashtra Housing and Area Development Authority (Mhada). Lalit Jain, counsel for the residents, told DNA Money that "a decree" has been issued by the court for attachment. However, Sumer Group's chief executive officer Rahul Shah claimed that it isn't a decree but a warrant issued by the court.

As per legal parlance, warrant is a document issued authorising to make arrest, search properties or attach properties, whereas a decree is a judgement by the court ordering enforcement of court's decision to be carried out. Properties listed under the schedule of attachment includes Fort office of Sumer Builders, third building in Sumer Trinity Tower, four flats in second building of Sumer Trinity Tower, its projects of Sumer Princess (Dadar West), Sumer Bhurani Park (Mazgaon), Sumer Bay (Mazgaon), Sumer Tower (Byculla East), Sumer Park (Byculla East) and Sumer Saraswati (Gamdevi).

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Home buyers approach NHAI for completion of Dwarka Expressway

Home buyers approach NHAI for completion of Dwarka Expressway

The Dwarka Expressway (DXP) Welfare Association which represents the home buyers and investors from more than 34 projects across Dwarka Expressway road today demanded for early completion of the expressway being constructed by the National Highway Authority of India (NHAI).

The association has handed over a letter to the chairman of the NHAI where the issues related to development of basic infrastructure like water, electricity, sewage system, etc., across Dwarka Expressway in Sectors 37, 81 to 115 of new Gurugram has been highlighted due to non-completion of the project.

Yashesh Yadav, president of the DXP Welfare Association, said, “Dwarka Expressway is a six-lane road which will provide alternate connectivity between Delhi and Gurugram to ease traffic and pollution level, but still there is no concrete plan from the government side to complete the project”. Pradip Rahi, general secretary of the DXP Welfare Association said, “Home buyers don’t see the desirable seriousness from the government authorities towards resolving the issues pertaining to completion of Dwarka Expressway and the situation is same even after it has been declared as National Highway in April 2016. 

For the last one year, the issues have only increased and even today there is no connectivity between existing portion of Dwarka Expressway and NH8 or towards Delhi.” He said Minister of Road, Transport and Highways, Nitin Gadkari and his associates in the NHAI are giving false deadlines to complete the eight-year delayed Dwarka Expressway and now 90,000 home buyers are seeking their seriousness to complete this project, said the general secretary.

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Sebi orders defreezing of former Saradha Realty official's account

New Delhi, Sebi today ordered defreezing of the bank account of a former official of Saradha Realty in a matter related to an illicit money pooling case.

In July 2017, the Securities and Exchange Board of India (Sebi) had ordered the attachment of bank accounts of Saradha Realty and 10 others for recovery of over Rs 1.09 crore along with further interest and all costs, among others.

In the fresh order, the regulator said that the attachment order is not to be affected in respect of pension amounts credited or to be credited in Arvind Kumar Mishra's bank account with the State Bank of India's Uttar Para Branch. Sebi also said that all other accounts pursuant to the July 2017 attachment order "shall continue to be attached".

In October 2016, Sebi had directed Saradha Realty, its managing director Sudipta Sen as well as two other directors Hemanta Pradhan and Monoj Kumar Nagel to pay a total fine of Rs 2 crore for failing to comply with the regulator's earlier directions to wind up illicit money-pooling schemes and refund the investors. Saradha Realty, as also its promoters and directors, were asked by Sebi in April 2013 to wind up all existing collective investment schemes and to refund the money collected from investors, with returns, within three months.

In January this year, the regulator had imposed a total penalty of Rs 1 crore on Saradha Realty, Sen, Pradhan, Nagel and seven former employees of the firm in the illicit money pooling case. However, recovery proceedings were iniatiated against Saradha Realty and 10 others after they failed to pay the penalties. 

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Court rejects anticipatory bail for Lucknow builder who cheated Gurugram buyer

GURUGRAM: A Lucknow-based real estate company, which was booked for allegedly taking money from an investor for a unit in a commercial tower and later selling the same to another buyer, failed to get relief from the sessions court as its anticipatory bail application was rejected.

Following the direction of the court on September 9, a case was registered against Welldone Technology Parks Development Private Limited, its directors Umashankar Halwasiya, Sanjay Khurana and managing director Mukund Halwasiya, under sections 406 (criminal breach of trust), 420 (cheating) and 120B (conspiracy) for cheating Suresh Kumar at Sadar police station.

Sanjay Khurana, Mukund Halwasia and Umashankar Halwasiya had filed an anticipatory bail application in the sessions court, through their lawyer Ravinder Kumar, claiming that they were falsely implicated in the case even after paying the assured Rs 70 lakh to the complainant. "The site (shops) was changed and re-allotted with the consent of the complainant and no loss was borne by him," contended Kumar before the court. The public prosecutor argued that the company cheated the complainant by selling its floors to other parties without his consent.

Advocate Vishal Gupta said complainant Suresh Kumar had purchased a 1,500 sq ft unit (unit number 101A) on the first floor of Welldone Tech Park on Sohna road in 2008, after paying Rs 45 lakh. In 2010, the developer contacted Kumar and told him they had sold his unit (number 101A) by mistake. In 2015 Kumar found that his unit was shifted to 212A from 401A. Later he came to know that all the units were sold to different persons way back in 2010.

After hearing the contentions of both parties, additional session judge Balwant Singh in his order dated September 14 observed that the accused were first alluring the complainant for selling their property and then re-selling the same to third party at a higher rate.

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MahaRERA dismisses complaint against Bhujbal co - Mumbai

MahaRERA dismisses complaint against Bhujbal co - Mumbai

The developer of Hexworld project is M/s Devisha Instrastructure Ltd, one of the family-owned companies linked to Chhagan Bhujbal, who was arrested by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act last year. Bhujbal’s MLA son Pankaj, nephew and former MP Sameer Bhujbal, and relative Satyan Kesarkar, are directors of Devisha Infrastructure.

The promoters of Hexworld project have registered nine 39-storey towers and three 24-storey towers with MahaRERA as an ongoing real estate project. They revised its original December 2018 possession deadline to December 31, 2033. The project was attached by the ED in November 2015 as part of the action taken against Chhagan Bhujbal, who had launched Hexworld when he was home minister in the Congress-NCP government. The project was stalled after the plinth was built.

Buyer Amitkumar Ahuja had filed a complaint under Section 18 of the Real Estate (Regulation and Development) Act, seeking a refund of his investment in a one-BHK flat, and a two-BHK flat booked in the name of his wife Swati in January 2010 and April 2011 respectively. In his complaint, he said the project had been stalled for five years, and hence he wanted the developer to return his money. The developer claimed MahaRERA had no jurisdiction to decide the complaint.

During the hearing on the point of maintainability of the complaint, adjudicating officer Bhalchandra Kapadnis, Member MahaRERA, observed that the date of competition promised by the developer at the time of booking the flat had not lapsed, and hence Section 18 provisions did not come into play.

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Home buyers file complaint in NCDRC against Maha housing authority

Home buyers file complaint in NCDRC against Maha housing authority

NAGPUR: Delayed possession of flats compelled home buyers to move National Consumer Disputes Redressal Commission (NCDRC), New Delhi against Maharashtra Housing and Area Development Authority (MHADA). The commission has issued a notice to the state authority in this regard.

The complaint, Mitali Cooperative Housing Society, claimed that 320 prospective buyers had paid in full to the tune of Rs 45 lakhs each to MHADA when its ‘City Project’ flat scheme, on Subhash Road, was launched in 2012 and were promised possession. MHADA collected Rs128 crores from its customers.

Complainants through counsel Tushar Mandlekar, also claim that four illegal extensions were given to the contracted company M/s IVRCL Limited, the latest till November 31, 2014. The contractor has not completed construction till today.

They further claim that MHADA has also failed to procure statutory permissions like building completion certificate, occupancy certificate, environmental clearance and fire no objection certificate. Facilities like podium garden, firefighting system, swimming pool, club house, etc were promised by MHADA but have been completed either.

The complainant have prayed for compensation of Rs37 lakhs per buyer with interest rate of 16% per annum from each date of payment. They have also sought valid possession of flats, sale-deeds and statutory certificates from MHADA, Mandlekar informed.

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Pune's Shivtara Meredian Associates told to refund Rs 3.35 lakh to homebuyer

Pune's Shivtara Meredian Associates told to refund Rs 3.35 lakh to homebuyer

The district consumer court has directed Shivtara Meredian Associates — a partnership firm in realty business, located on Bund Garden Road — to refund Rs 3.35 lakh with 9% annual interest since December 31, 2015, for deficient service to an Ahmednagar resident.

The interest component so far works out to Rs 57,788 till November 30, 2017, and will continue to grow till the actual payment is realized. The court has also imposed a Rs 5,000 cost on the realty firm while giving it 45 days time to implement the order. Complainant Pradip Jalinder Sole of Jamkhed in Ahmednagar district had cancelled a deal to purchase a 570 sq ft flat in the firm’s proposed housing project, Tara Alicia, at Kunjirwadi, after there was no progress in construction. He has since pursued the matter of a refund of Rs3.35 lakh, which he had paid the real estate developer.

The realty firm had even given him two cheques towards a partial payment of the refund amount, but those cheques bounced, prompting Sole to file a consumer complaint against the firm’s partners, Nilesh Shivji Singh and Ravindra Laxman Dhumal.

In an ex parte ruling on December 8, a three-member bench comprising consumer court president V P Utpat and members Onkar G Patil and Kshitija Kulkarni referred to the evidence adduced by Sole, which remained unchallenged, and held: “The complainant has established that the opposite parties (realty firm) have caused deficiency in service by not refunding the booking amount as well as stamp duty and registration charges and the consumer complaint deserves to be partly allowed.”

The bench pointed out that notices were duly served on the two partners in the realty firm, but they failed to appear before the forum without any sufficient reason and also failed to file their written version on record. As such, the consumer complaint proceeded ex parte against them, it held.

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Tatvam RWA (Vipul Limited) in Gurugram seeks upkeep transfer

GURUGRAM: Residents of Tatvam Villas society in Sector 48 have disputed the builder Vipul’s claim that they can’t transfer the maintenance work to the local RWA as the society was originally a part of a larger project under the name ‘158 Acres’.

Residents alleged the builder has illegally made an extra villa that wasn’t there in the original master plan, which, as per an order by DTCP in August, was supposed to be demolished. They also alleged getting electricity bills exceeding the tariff mandated by DHBVN.

This comes on the heels of the recent action of DTCP against “encroachers” in Heritage city. Residents are questioning why is it easier for DTCP to act against the poor, but not against the well-off. “The maintenance is very expensive,” said Sameer Sinha, joint secretary, RWA, Tatvam Villas. Sinha said the maintenance work by Vipul Limited isn’t up to the mark either. “They have some Rs 23 crore with them as non-interest bearing security deposit. We also asked them to give us access to book of accounts, but they refused,” he said.

Residents said they have also written to Vipul Limited to hand over maintenance work to the RWA. The residents alleged that builder was made the community centre a commercial hub which is accessible to outsiders. “What is the point of having a gated colony?” asked Meera Singh, General Secretary of Tatvam Resident Welfare Association.

Tatvam Villas have 245 villas. “But Vipuls are building another villa. Villa number 52 was not supposed to be there in the in the approved plan. It was a green patch,” Sinha said. However, the spokesperson from Vipul Limited refused the allegations made by residents. “Their issue is not maintenance. If one happens to stride across the Tatvam Villas, they will see how clean and maintained it is even now, unlike other societies. It is part of the mega project 158 Acres, and maintenance will go to MCG for the full project, not them. Tatvam is a small part of the 150 Acres. They are completely mischaracterising the issue.”

As for demolishing the structure, spokesperson said Additional Chief Secretary Town and Country Planning Arun Kumar had already passed another orders issuing stay on Satyaprakash’s. An official from DTCP, however, said the case had been appealed to higher authorities and he could not speak on the matter immediately.

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PACL ponzi scam case: ED attaches Rs 472 crore assets

PACL ponzi scam case: ED attaches Rs 472 crore assets

NEW DELHI: The Enforcement Directorate today said it has attached assets worth Rs 472 crore, including one in Australia, in connection with its money laundering probe in the PACL ponzi scam case.

The ED had registered a criminal case against the firm in 2015 based on a CBI FIR against the group, its directors and officials.

"Properties worth Rs 472 crore have been attached under the Prevention of Money Laundering Act (PMLA) in PACL ponzi scam operated by Nirmal Singh Bhangoo. The properties include MiiResorts Group 1 Pty Ltd and Sanctuary Cove properties in Australia," it said.

PACL is being probed by multiple agencies. Earlier, capital markets regulator SEBI had found it to have collected money from crores of investors allegedly through unauthorised collective investment schemes, also called ponzi schemes, in the name of real estate projects.

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Another builder agrees to refund home buyers

Another builder agrees to refund home buyers

Abdul Mapkhan Shah of MS Shah Developers holds meeting with 71flat buyers, whose money is stuck in a half-constructed project in Thane West; promises to pay back

Aday after Diipesh Bhagtani of JVPD Properties Ltd and Jaycee Homes Ltd told home buyers that he will liquidate company assets to refund them Rs 410 crore, another builder has now come forward with a similar proposal to bail out 71 flat buyers, whose money is stuck in a half constructed project in Thane West since 2013.

On Sunday, Abdul Mapkhan Shah of MS Shah Developers held a meeting with the flat buyers, agreeing to refund them and complete the project located in Kasarvadavli.

On October 18, Mumbai Mirror had reported about the agonising wait of the middle-class flat buyers for their dream home in the 12-storey Silverline project, which got stalled in 2013 due to a dispute between two brothers, Abdul Mapkhan Shah and Salim Mapkhan Shah, both directors in MS Shah Developers. Over 80 per cent of the buyers were looking forward to their first home, and for the past four years, they have been paying the EMIs on home loans, as well as the rent for the rented accommodations.

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Real estate regulator takes off, Credai seeks 90-day period for registrations

Real estate regulator takes off, Credai seeks 90-day period for registrations

BENGALURU: The Real Estate Regulatory Authority (RERA) has begun its activity in Bengaluru, and has started accepting registration of projects, agents and complaints.

The birth of the Authority follows the State Government notifying the RERA rules, last month. “The regulatory authority has begun functioning, and the principal secretary is heading it for the time being. The government will soon appoint a regular chairman,” Housing Minister M.Krishnappa told ET. The authority, he said, is clarifying doubts both online and offline, and will help home buyers. 

The RERA is functioning out of an office at KHB complex on KG road in Bengaluru, and developers, real estate agents and consumers need to register using the Authority’s website. Since the launch of the portal, many promoters and agents have submitted their registration requests and paid the fee online, the government, RERA officials said at an interaction with the media on Thursday. The officials also urged developers of ongoing projects as well as those ready for launch to register with the Authority. 

Former Credai Bangalore president J.C.Sharma termed RERA going on stream as “it is better than never.” His own company, Sobha Developers registered one project on Wednesday and many others are in the pipeline. He, however, requested the regulator for a 90-day window from the date of notification of RERA rules for developers and real estate agents to get themselves registered. “RERA is going to put both fear and pressure among project developers, and make them customer friendly. This will hopefully stop any diversion of funds by developers from the project for which the money is collected,” said Damla Mathew, MD at Damden Properties, a developer of budget homes. 

He, however, said he was unsure how this is going to play out in terms of sales. “From demonitisation to GST to RERA have psychologically weakened the spirit of the real estate industry. The timing of RERA, I think, is wrong.” 

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Sebi directs Gwalior-based KMJ Land Developers India to refund investors money

NEW DELHI: Markets regulator Sebi today directed Gwalior-based KMJ Land Developers India and its directors to refund within a month the money collected from investors illegally.

In an interim order passed in 2014, the regulator had restrained the firm and its directors from raising funds from investors after finding that money pooling activity by the company was in the nature of "collective investment scheme (CIS)" and was being run without requisite approval from the regulator.

The Securities and Exchange Board of India (Sebi) had concluded in its interim order that the fund mobilising activity of KMJ Land Developers India under the garb of a real estate business for the sale/purchase, development and maintenance of agricultural land fell within the parameters of a CIS. "I have perused the contents of the interim order and do not find any reason to differ with the prima facie conclusion arrived at in the interim order," Sebi Whole Time Member (WTM) G Mahalingam said in an order today.

Mahalingam noted that in the absence of any evidence provided to refute the findings in the interim order, the activities of the firm and its directors constitute a CIS and has been carried out without seeking a registration from Sebi, thereby contravening the CIS Regulations. The directors are Santoshi Lal Rathore, Rajawat Kushwah, Nirmala Rathore, Gopal Prasad Gupta, Dilip Jain, Sunil Singh, Mathura Bai and Sunil Singh Kushwah.

KMJ Land Developers India and its directors "are jointly and severally liable to wind up its existing collective investment schemes and refund the money collected by it under the schemes with returns which are due to the investors" within a period of one month, the order said.

Besides, the firm and its directors have been restrained from holding position as directors or key managerial personnel of any listed company for a period of four years. The firm and its directors have also been ordered not to alienate or dispose of or sell any of the assets of the company except for the purpose of making refunds to its investors.

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60,000 owners of open plots in Hyderabad to get GHMC tax notice

60,000 owners of open plots in Hyderabad to get GHMC tax notice

The civic body is gearing up to slap notices on about 60,000 people who have open plots registered on their names in the Greater Hyderabad limits in the past two years.

People who own open plots in the Greater Hyderabad Municipal Corporation limits may have to cough up Vacant Land Tax (VLT) from now on. With a view to mop up revenue, the GHMC has decided to collect VLT from plot owners every year.

The civic body is gearing up to slap notices on about 60,000 people who have open plots registered on their names in the Greater Hyderabad limits in the past two years. The deputy municipal commissioners (DMC) of all circles have been asked to send notices to the plot owners.

The civic body has also proposed to make VLT payment mandatory for registering open plots in the corporation soon. While property tax is based on the square feet, VLT is 0.5% of the property value at the time of registration. VLT should be paid every year till a building is constructed on it.

Though there has been such a provision in the GHMC Act to impose VLT on open plots like property tax on buildings, the municipal corporation has not been collecting from the owners as the owners buy plots at one place and live in other areas

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Three years on, NBCC home buyers await flat documents

GURGAON: Homebuyers of NBCC Heights housing society in Sector 89 are planning to boycott a meeting called by the developer next week.

The buyers, mostly central government employees, allege it is a plot to pacify them as the builder has minimised the balcony size of the flats and used substandard material for windows and doors. They have also been raising voice over the continued non-allotment of the papers of their flats for the past three years. NBCC Heights is a residential apartment project that began in 2011, initially exclusively for central government employees. 

The realtor is none other than National Buildings Construction Corporation Limited (NBCC), a public sector company.Over 100 buyers from Gurgaon, Delhi and different parts of country had come to the city last month to meet the officials of NBCC and deliberate on the matter. “The meeting ended inconclusively and we weren’t satisfied This time we may not even attend the meeting,” a buyer told TOI. “I received a letter calling for a luncheon meeting on December 24. We suspect this is meant for pacifying us. But we won’t be agreeing to them this time around,” Pramod Kumar Juneja, a buyer, told TOI.

Residents had protested against the company last month as well alleging it had deferred the payment of instalments for two years and then suddenly in October 2017, issued notice to pay the remaining instalment within one month failing which 12% interest would be levied on buyers.

Buyers also alleged that the project had only 15 sq ft of swimming pool. “We are going to be over 400 families living there and the pool is so small that it will get crammed by only by half-a-dozen people. It is not a pool it is an eye wash.” Ranbir Singh Redhu, another buyer, said.

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90% cost paid, Winter Hill home buyers still await flats

90% cost paid, Winter Hill home buyers still await flats

GURUGRAM: Days after TOI reported about the delay in handing over possession of flats to homebuyers in Universal Aura project in Sector 82, investors in the Umang Winter Hill project in Sector 77 have alleged the developer left the construction halfway through five months ago.

Home buyers said despite paying up almost 90% of the total cost of the apartment, the builder is delaying the handover on one pretext or the other. They also said that the parent company, Umang Realtech Ltd, had shut all its contacts and there was no one from the builder’s side they could correspond to.

According to home buyers, they are a worried lot as they are awaiting possession of their homes, which were originally projected for 2015. The project is spread over an area of 16.50 acres and has 16 towers with more than 700 flats. “I know over 50 more home buyers with me who too are facing similar issues,” said Sumit Saxsena, a buyer. “Initially we yielded to the developer’s dilly-dallying, but now none of the people from the company is taking our calls,” he said. 

Saxsena said while the project was launched in 2013, he wasn’t a direct buyer. “I had originally purchased a flat in Monsoon Breeze Phase 2 in Sector 78. I had paid the initial payment but soon, they stopped the construction we tried to ask them what happened, they didn’t have a coherent answer. Ultimately to pacify buyers like me, they offered me a flat in their project in Sector 77. But I am still waiting for possession,” he said. “The builder has left us in limbo. My wife managed to get in touch with one of their representatives few days ago and he talked to her very rudely,” said Kawaldeep Singh, another buyer. TOI called the office of Umang Realtech Ltd but no one returned the calls. Despite repeated attempts, JS Jerry, who looked after the correspondence with home buyers on behalf of the builder, could not be contacted.

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Residents drag Mumbai builder to court for mortgaging highrise land

MUMBAI: In a bizarre case, a routine check of property papers by residents of a Prabhadevi tower left them astounded. Their developer, they found, had mortgaged the 2,103 sq yard building plot, 12 flats, the car park and basement to Abhuydaya Co-operative Bank to raise Rs 236 crore, 20 years after the structure was completed and occupied.

Flat owners of Pushpanjali, a 15-storey building near Siddhivinayak temple, dragged the builder, Avarsekar & Sons Pvt Ltd, to the Bombay high court last year. “Fortunately, the flats were released the same year, but the land and common areas still remain mortgaged to the bank,” said residents, who have urged HC to restrain the developer from selling, transferring, conveying or alienating the property or creating third-party rights.

Residents drag Mumbai builder to court for mortgaging highrise land. The Avarsekars control Unity Infra projects, once a leading infrastructure firm which had constructed the Thackeray family bungalow Matoshree at Kalanagar, Dadar TT flyover, CST subway, and more recently, renovated Mantralaya. Early this year, Unity Infra projects had filed for insolvency before the National Company Law Tribunal as it was unable to pay its debt in excess of Rs 3,000 crore.

Last month, when the residents lodged a formal complaint to the RBI, Abhyudaya Cooperative Bank washed its hand of the matter and wrote back that it had assigned the borrower’s debt to an asset reconstruction company.

Builder Kishore Avarsekar told TOI the land and flats were wrongly mortgaged to the bank in 2012. “The property was mortgaged inadvertently and on realizing, immediate steps were taken to substitute the wrongfully mortgaged flats with other property. As far as the plot and common areas are concerned, we are in talks with Abhyudaya Bank to have the same substituted,” he told the court.

The legal battle further intensified this year over the formation of a cooperative housing society, which residents said the builder was preventing them from doing so since 1997. Avarsekars, in turn, said the agreement with the flat owners stipulated forming a condominium and not a society. But flat owners have challenged this in the sub-registrar’s office, saying no such agreement exists. “Under a condominium agreement, all future benefits from the land and property go to the builder and not the flat owners,” said Shah.

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MahaRERA fines Piramal Realty for violation of rules

MahaRERA fines Piramal Realty for violation of rules

In the biggest penalty levied so far, the Maharashtra Real Estate Regulatory Authority has imposed a fine of Rs 50 lakh on realty developer Piramal Realty for violation of the Real Estate (Regulation & Development) Act, 2016. 

According to the order passed on Thursday by the MahaRERA Chairperson Gautam Chatterjee, Piramal Realty did not publish MahaRERA website address along with the advertisement of its project in south Mumbai’s Mahalaxmi locality. The advertisement also did not carry the project’s registration number on first page, while the second page carried the same in “very small” font, the order said. 

MahaRERA has taken this action on Suo Motu basis and warned the builder to ensure that such violation is not repeated in the future. The regulator has accepted the developer’s contention that the aforesaid violation has taken place unintentionally. 

ET’s email query to Piramal Realty remained unanswered until the time of going to press. 

In March, the regulator had slapped penalty of Rs 2 lakh to Rs 10 lakh on 8 builders in Mumbai for advertising their respective real estate projects without mentioning the authority’s website address and advertising a non-registered project. MahaRERA had taken this action too on Suo-Motu basis. 

According to section 11(2) of the Real Estate (Regulation and Development) Act, 2016, the advertisement or prospectus issued or published by the promoter is expected to mention the website address of the authority wherein all details of the registered project are entered and include the project’s MahaRERA registration number. 

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SRS Group chairman, four others sent to judicial custody

A court here on Thursday sent SRS Group Chairman and four others in one-day judicial custody.

Acting on a tip-off, a team of Faridabad police had arrested SRS Group Chairman Anil Jindal along with Nanak Chand Tayal, Bishan Bansal, Devendra Adhana and Vinod Mama from a hotel in New Delhi's Mahipalpur area on Wednesday night on charges of duping people of crores of rupees on the pretext of giving homes.

All the accused will be presented before a special court on Friday. According to police, 22 cases had been registered against the accused on March 4, at the Sector 31 police station in Faridabad, under Sections 420 (cheating and dishonestly inducing delivery of property), 406 (criminal breach of trust), and 120B (criminal conspiracy) of the Indian Penal Code (IPC), and Section 3 of the Haryana Protection of Interest of Depositors (in Financial Establishment) Act, 2013.

Vikram Kapoor (DCP, Headquarters), said, "After the cases were registered, the Economic Offence Wing (EOW) cell began gathering evidence against the accused, as part of the probe, while simultaneously also conducting raids to nab them."

"However, the accused kept changing their hideouts to evade arrest.They were finally arrested on the basis of information received from sources and other means of investigation," the DCP added.

Apart from the 22 cases that have been registered against the five men, the EOW cell is also investigating 100 complaints.

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Consumer forum directs Chandigarh-based Manohar Infrastructure to pay Rs 11 crore to 26 flat buyers

Consumer forum directs Chandigarh-based Manohar Infrastructure to pay Rs 11 crore to 26 flat buyers

CHANDIGARH: The Chandigarh State Consumer Disputes Redressal Commission has directed real estate company Manohar Infrastructure and Constructions Private Limited to pay nearly Rs 11 crore as refund to 26 consumers along with interest, compensation and litigation costs for failing to give possession of flats on time.

The complaints being of same nature were decided in a single order. All allottees had demanded refund along with compensation. However, to dictate the order, facts were taken from the complaint filed by Bimla Devi and Baljinder Kaur of Sector 11, Panchkula.

They alleged they were allured by misleading advertisements of the project launched by the company under “Palm Garden” at New Chandigarh, Punjab. The complainants opted to purchase a residential plot measuring 250 square yards for Rs 19,500 per square yard. The total price was fixed at Rs 48.75 lakh, excluding external development charges. At the time of booking, the complainants paid Rs14.62 lakh. Later, they paid Rs 9 lakh.

The complainants alleged possession of the plot was not delivered by the promised date. When they visited the site, they noticed that there was no development. When they realized the delivery of the possession of the plot was not in sight, they sent a legal notice on December 22, 2016, to the builder, seeking refund.

The commission, in its order, noted that it is mandated that the project can only be launched when layout/zoning plans are cleared from the competent authorities and exemption is granted from operation of the provisions of Punjab Apartment and Property Regulation Act (PAPRA), by the government. The project, in question, was sold without any permissions and required sanctions and also violated the provisions of PAPRA.

At time of arguments, the company’s counsel said the application to get mega project approved was filed in 2011. “Delay occurred on account of laxity on the part of the bureaucrats and further it was deliberately done because of rivalry between the political party in power and the managing directors of the company, the counsel alleged The commission concluded that the complainants cannot be made to wait for an indefinite period for delivery of possession of plot purchased by them.

The commission also held that RERA and PAPRA will not debar the jurisdiction of this commission in entertaining the complaints filed by a consumer.The court allowed the various complaints with a direction to refund the entire deposited amount with 13% interest and to pay compensation, in varying sums of Rs 75,000 to Rs 1.50 lakh for causing mental agony and physical harassment, to the complainants, as also escalation in prices and to pay litigation cost of Rs 33,000 each.

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Bombay HC rejects Oscar Builders' petition, says a party can't seek same relief thrice

MUMBAI: The Bombay High Court has dismissed a writ petition by Oscar Builders for seeking the demolition of alleged illegal construction in Oscar Towers building in Mumbai Central questioning why the petitioner was “in slumber” for 12 years and sought the same relief given to him in 2004.

“It is well settled that the relief granted by the court to a party cannot be sought by the party time and again by filing successive proceedings merely because the earlier orders are not implemented. This would not only vex the opponents but would also vex the court. The petitioner was in slumber for more than 12 years after the orders in the two proceedings are passed in favour of the petitioner,” said the HC bench.

The bench comprising Justices Vasanti A Naik and Riyaz I Chagla said in an order ruled on December 7 dismissing the petition filed on behalf of Shabbir Patel, chairman of Oscar Builders Pvt Ltd which constructed 14-storey Oscar Towers in 2000 near Maratha Mandir cinema in Mumbai Central.

Oscar Builders Pvt Ltd and its flat buyers have been locked in multiple civil disputes over several issues. Alleging that certain buyers had done illegal alterations in the building, the developer had filed the writ petition seeking action against Municipal Corporation of Greater Mumbai to implement the notices issued in 2002, 2009 and 2013 under section 351 and 353 of the Mumbai Municipal Corporation Act and to comply with the High Court orders dated January 25, 2002 and June 25, 2004.

In January 2002, the High Court had permitted the Corporation to take appropriate action against the flat owners that had arbitrarily made illegal constructions and demolish the work, if any, as per the law. Notices were also issued against some of the occupiers of the flats as per the 2002 order. Separate civil suits were filed by Oscar Builders against some occupants in 2001 and notice of motion was filed in these suits.

While disposing the notice of motion in each of the suits, the High Court had directed the Municipal Corporation to proceed with the matter irrespective of the pendency of the suits as per the law.

“It is apparent from the aforesaid set of facts that the petitioner has moved this court time and again for seeking a direction against the Corporation to initiate action against the erring respondents and for removal/demolition of the illegal construction. The same relief cannot be sought by a party time and again by filing successive proceedings,” the order said adding “the petitioner had filed proceedings in 2001 and 2002 and in both the proceedings appropriate orders, directing the respondent Corporation to take action in accordance with the law, were passed. If the Corporation has not taken action in pursuance of the said orders, the petitioner had other remedies.”

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Consumer forum makes Mumbai's Ravi Developments liable for every promise in advertisement

Consumer forum makes Mumbai's Ravi Developments liable for every promise in advertisement

MUMBAI: The state consumer commission has said that promises made by a builder in an advertisement or sales brochure have to be fulfilled. The commission made the observations in a recent ruling against Ravi Developments who in its advertisement for sale of a housing complex at Mira Road had promised to provide a ground, garden, water fountain, CCTV cameras, intercom and other amenities to the flat purchasers, but failed make the provisions.

The commission dismissed the developer's appeal against a 2015 district forum order. On January 12, 2015, the Thane consumer forum directed the developer to procure the occupation certificate from the Mira Bhayandar Municipal Corporation within 40 days with respect to the complex, which has four wings. The forum also imposed a daily penalty of Rs 100 on the developer from February 15, 2015, until the OC was obtained and handed over to the society.

Further, the developer was also told to provide the amenities, including the common garden, fountain and CCTV cameras as promised within three months from the date of order, failing which a penalty would be imposed at the rate of Rs 200 daily until compliance. The developer was also directed to convey the land and building in the name of the society, failing which a further daily penalty of Rs 200 would be payable to the society from March 2015. Additionally, the commission directed the developer to pay a compensation of Rs two lakh to the housing society for its failure to procure the OC and provide the common amenities.

Aggrieved, the developer moved the Maharashtra State Consumer Disputes Redressal Commission in 2015. The developer contended that the district forum order was contrary to the sale agreement as there was no promise in that document to provide such amenities.

Gaurav Regency Cooperative Housing Society, represented by advocate Ajay Mehrol in the commission, pointed out that the flat purchasers had invested in the property on the basis of promises made in the advertisement.  The commission pointed out that under the Maharashtra Ownership Flats Act, it is obligatory for the developer to construct the building in accordance with sanctioned plan and then to convey the property in favour of the society so that it, in turn, can take possession of the amenities promised in the brochure. 

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Two Chennai builders ordered to pay Rs 2 lakh compensation for unfair trade practice

Two Chennai builders ordered to pay Rs 2 lakh compensation for unfair trade practice

CHENNAI: A city consumer court has directed two Chennai-based realty firms to pay Rs 2 lakh compensation to a buyer, for failing to begin construction of flats even after five years of collecting advance payments.

Jeayam Shelters Private Limited and VIP Housing & Properties were also told to return Rs 8.56 lakh collected as advance with 12% interest since 2012.

J Sivaramakrishnan, a resident of Thiruvanmiyur, booked a 855sqft flat in a new project announced by the two realtors in Adambakkam Project, and paid an advance of Rs 10.56 lakh.

As the construction for the new project did not commence even after several months, Sivaramakrishnan approached the firms. They returned Rs 2 lakh to him and refused to answer his queries or execute a sale deed and construction agreement.

Aggrieved, Sivaramakrishnan approached the consumer forum seeking a direction to the firms to refund the advance amount with 18% interest and to pay compensation for not commencing the construction and there by indulging in unfair trade practice.

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Mumbai: 11-years-on, no home in sight for families of Goregaon Pearl co-operative society

MUMBAI: In 2007, around 60 families handed over their homes to a builder in the hope of getting swanky new flats in their redeveloped building within three years. Eleven years on, not only are they yet to get the promised flats, they are also embroiled in a legal dispute as the developer stopped paying them the money for rent from December 2014. Moreover, despite a court order in July 2017, ordering the developer to pay up Rs 7.62 crore, the firm is yet to pay up a major chunk of this, totalling Rs 5.61 crore.

The families, who used to live in three 3-storey buildings of Goregaon Pearl Cooperative Housing Society, have been living on rent ever since they handed over the keys to Shree Sai Group of Companies for redevelopment in 2007. Seven years later, in December 2014, the developers Jayesh and Deep Tanna stopped paying them the money for monthly rent. In 2015, the residents, most of whom are senior citizens, filed a complaint with the National Consumer Disputes Redressal Commission.

Later, they approached the High Court for relief. In July 2017, consent terms were signed between the developer and the society before Justice KR Shriram, according to which the Tannas agreed to pay a sum of Rs 7.62 crore, including Rs 7.21 crore towards outstanding rent arrears till May 2017, a penalty of Rs 17 lakh for delaying possession promised in September 2010, and a sum of Rs 24 lakh towards outstanding brokerage.

“Any default in the aforesaid payments will be considered as an event of default and will attract simple interest @ 15 per cent per annum calculated on a per day basis till the date of payment,” the consent terms said. However, residents claim the developer still owes them Rs 5.61 crore.

The developer has not even begun the stalled construction of the two towers – A wing of ground plus three floors and 20 upper floors, and B wing consisting ground plus 3 podium floors and 18 upper floors. While A wing was to rehabilitate 28 of these families, B wing was to house 32 rehabilitation flats.

When Mirror contacted Deep Tanna, one of the developers, he said, “This redevelopment project was delayed because of uncertainty in MHADA policy and we got the permissions in 2013. By then the society filed a complaint with the Consumer court and two years were lost in that. Now we have registered the project with MahaRERA and we have given possession deadline of July 2018. We have put all our resources into completing this project, and we will give possession for rehab component in B wing by March 2018. We intend to complete the A wing by October 2018. I also had a meeting with the residents and assured them that I am committed to completing this project.” In response to residents’ complaints that the flats in A wing are smaller than B wing, he said, “The fungible FSI was a new law brought by BMC in 2012 and we had offered the residents to move into B wing so that A wing can be fully free-sale, but they didn’t agree. I have now utilised the third party rights and sold the flats in B wing so it is not practically possible to shift them all to B wing.”

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