Gurgaon builder sells off project land, investors cry foul
Jul 07, 2014
Source : The Times of India


DELHI: More than 400 investors from Delhi and NCR, who had booked flats in a Gurgaon housing project and deposited 25% of the cost upfront, are demanding investigation into what they call a multi-crore fraud because the developer had allegedly sold off the project land.

Get the best advice on your property

The project, Cosmos City in sector 103 on Dwarka Expressway, was launched by Adel Landmarks (formerly Era Landmarks) in 2011. The investors say the developer collected Rs 55 crore before selling off the plot where the project’s second phase was to come up to Ansal Housing in early 2013.

Read reviews of Gurgaon’s localities

Ansal launched its flagship Highland Park project on the land and has completed 20% of the construction besides starting bookings.

The investors, 432 in all, say they had deposited 25% of the apartment cost while the rest was to be paid during possession. They claim Adel hasn’t given any satisfactory reply to their demands for a refund. TOI tried to repeatedly contact Adel Landmarks and Ansal Housing but all calls and messages went unanswered.

Investors who had paid 25% advance for booking flats in Adel Landmarks’ Cosmos City project in sector 103, Gurgaon are demanding their money back.

These investors say they were shocked to see advertisements about the launch of Ansal’s project at the site where their flat were supposed to come up.

According to one of the investors, B P Gautam, after the investors paid 25% of the amount, company gave them receipts and allotment letters. “But since 2011, there has been no movement on the project. We visited the company’s office several times but they are not willing to share any information with us. They refused to provide us the builder-buyer agreement as well,” he said.

Another investor, Gopendra Kumar, claimed that the company’s general manager (marketing), Vikrant Gupta, told them that Adel not longer owned the land on which it launched the project three years ago. “He said the company had sold the land, along with the development licence, to Ansal through one of their subsidiary companies,” Kumar told TOI.

The investors say three years after they paid the initial booking amount, they have no builder-buyer agreement, no relevant documents and no timeline for completion of the project. “We have tried to talk to the company many times in the past two years but failed to get any satisfactory reply,” Kumar said.

Last Saturday, more than 50 of the investors managed to meet Arun Singh, Adel’s vice president (marketing) at its Noida office after a protest. Singh gave them a letter addressing all allottees (a copy of which is with TOI) which read, “The company is equally serious to sort out the pending issues. It is proposed and agreed by the representatives that a meeting will be held by July 31, 2014 in which all issues shall be addressed by a competent team from the company with practical and possible options to provide a meaningful solution”.

Gautam, one the of investors, said what the company had done was patently illegal. “The Haryana Urban Development and Regulation Act 1975 says no developer is allowed to sell or advertise a housing project without the project license. If they do so, it is a clear case of fraud and cheating. I’ve in my hard earned money. Action should be initiated against the builder,” he said.

Gautam said the investors had approached the Securities and Exchange Board of India (Adel is a listed company) seeking action against the developer. In its order dated June 5, 2014, Sebi directed the developer not to collect any fresh money from investors, not to launch any new schemes, to submit full inventory of the assets, not to dispose any properties and not to divert any funds raised from the public. TOI has a copy of the order.







Latest Realty News

Budget 2014: Suggested amendments for real estate
Jul 07, 2014
DELHI: The real estate sector happens to be one of the very important sectors for the overall growth of the economy. Since the new government, led by Prime Minister Narendra Modi, has taken a pragmatic view of providing housing to all by 2020, it becomes very important that certain amendments are made in the law for the real estate sector.
Housing Prices Can Fall on Transparency, Timely Approvals: HDFC
Jun 20, 2014
Calling for major reforms in housing sector, HDFC chairman Deepak Parekh has said transparency and timely approvals from different authorities can reduce home prices by almost 20 per cent.
Brahma Management to invest Rs 3,000 crore in Indian real estate sector
Jun 20, 2014
Nine years after it was formed, New York-based Brahma Management has lined up big investments for the Indian real estate market . Brahma, an FDI-funded investment and asset management company, has already invested around Rs 2,500 crore in the sector and has plans to put in another Rs 3,000 crore over the next two years.
Mahindra Lifespaces ventures into affordable housing segment
Jun 20, 2014
Mahindra Lifespaces Developers, the real estate arm of the Mahindra group, on Monday launched its new business vertical 'Happinest' that will focus on developing affordable housing projects.
Delhi Development Authority to roll out 'largest-ever' housing scheme by July end.
Jun 17, 2014
NEW DELHI: The largest-ever housing scheme of Delhi Development Authority will be rolled out for city- dwellers by July end, offering over 26,000 flats across various categories with most of them being built with "green technology", a top official of the housing body today said.
Delhi: 40% buildings don’t comply with fire safety norms
Jun 14, 2014
DELHI: Four out of 10 buildings in Delhi do not comply with the safety norms, according to fire officers. The unsafe buildings include residential and commercial complexes, schools and nursing homes. Even the playschool which caught fire on June 10 did not have a no-objection certificate (NOC), the officers said.
Noida homebuyers left in the lurch again!
Jun 14, 2014
DELHI: The recent judgment of the National Green Tribunal (NGT) prohibiting the Noida authority from giving completion certificates to projects within 10km radius of the Okhla Bird Sanctuary will affect around 20,000 buyers whose apartments have been completed and ready for delivery.
SC dismisses Noida builder’s plea against NGT order
Jun 14, 2014
DELHI: The Supreme Court on June 10 refused to entertain a plea of real estate firm Jaypee Infratech seeking a direction to Noida Authority to grant completion certificate to its projects which fall within 10km radius of a bird sanctuary.
Supreme Court refuses to hear real estate firm's plea against National Green Tribunal's order
Jun 14, 2014
DELHI: The Supreme Court on Tuesday refused to entertain a plea of real estate firm Jaypee Infratech seeking a direction to Noida Authority to grant completion certificate to its projects which fall within 10km radius of a bird sanctuary.
Delhi eyes rooftop solar power
Jun 07, 2014
DELHI: Delhi is trying to draw a few lessons from the Prime Minister’s Gujarat model. Gandhinagar’s rent-a-roof project may help Delhi supplement the power supply in the capital with solar energy. If the model is replicated in Delhi, according to official sources, it has the potential to deliver 50-100 MW. This was discussed by the capital’s top bureaucrats with their Gujarat counterparts on June 5.

Latest Realty News Of State

Realty Talk's