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.

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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.

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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.

 

 

 

 

 

 

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