Chintels residents have two options: Collect full repayment in four months or new flats in three years

The decision comes after a sixth-floor flat in Tower D collapsed, killing two people

After meeting with all stakeholders of the Chintels Paradiso condominium in Sector 109, the district administration on Wednesday chalked out a final plan for residents of towers deemed unsafe for living by a panel of IIT-Delhi. They can either opt for a full repayment of their flat cost, at the present day valuation, or opt to live at the same property and developers will build them new flats in three years.

Gurugram, India-May 03, 2023: Nishant Kumar Yadav, Deputy Commissioner held a meeting with developers of Chintels Paradiso and the residents of Towers D, E and F at meeting hall in Mini Secretariat, in Gurugram, India, on Wednesday, 03 May 2023. (Photo /HT)(Pic to go with Leena Dhankar's story)

Officials said in the meeting chaired by Gurugram deputy commissioner Nishant Kumar Yadav on Wednesday, it was decided that the developer will also have to repay the stamp duty and the expenditure incurred on interior work to those flat owners who want a complete repayment.

District officials said those flat owners who opt to live in the same property, the developer will have to construct new flats in three years.

The meeting was attended by flat owners and the top management of the realty firm, besides officials of the department of town and country planning (DTCP).

On February 10, 2022, renovations on a sixth-floor flat in Tower D led to the partial collapse of five floors, up to the first floor, killing two people.

Following the incident, the Haryana government filed a criminal case against the developer and conducted a district-level investigation, revealing several quality issues in the construction and design of the towers, which led to their collapse.

A three-member Indian Institute of Technology-Delhi (IIT-D) committee, formed to conduct a structural audit of the towers, submitted a report in September 2020 observing that the structure deteriorated faster than expected, even though the condominium was only occupied for about five years. The report also declared towers D, E and F unsafe for living.

The DC said the developer will repay the stamp duty spent on registry by the owners along with the property value calculated in per square foot at the current market rates.

“The residents are completely free to choose either of the two options. The developer will have to make the repayment in the next four months to the owners who opt for it. Till that time, the realty firm will continue to pay rent to the owners,” he said.

The developer has been asked to prepare a draft agreement for sharing with legal team of the residents, he said.

“In case the owners opt for the second option -- of getting new flats in place of the existing one -- then the district administration will get a structural audit of the newly built towers done before the flats are handed over to the respective owners after three years,” Yadav said.

During the meeting, residents claimed that the developer was getting another audit done independently by the Central Building Research Institute (CBRI).

Yadav said if the CBRI audit report differs from the one submitted by the IIT-Delhi team, then the district administration will get a third structural audit carried out by another independent agency.

Officials said those who are still living in the towers will be soon be served notices to vacate their flats.

After the meeting, one of the residents said at least the developer should pay rents to them until they begin the reconstruction.

“If I choose the second option, then I won’t get any rent. Suppose the developer delays starting the construction by two years, then we will continue to shell out money on rent for at least four to five years. I live on pension. It will become tough for us to make ends meet,” Sushil Rohilla , a resident of Tower F, said.

Another resident Sandeep Barsaiyan said, “As per option 2, the developer is asking for ₹1,000 per square foot for the reconstruction. But we have already invested a huge amount and many of us are already paying EMIs for the loan we took to buy the flats. Also, developer has refused to pay rent to us. The total rent over four years will come to nearly ₹25 lakh,” he said.

“We have another request -- the developer’s property should not be de-freezed as he might flee the country. We want a bank guarantee as he already has properties lying vacant in the state,” he said.

Another woman resident was also dissatisfied with the second option said the developer has put a caveat that the reconstruction will be done as per government approvals.

“There is no timeline as to when the developer will do the reconstruction or by when the government approvals will be granted. What we need is the government’s support and assurance that at least the developer will pay rent to those going for the second option until the new flats are ready,” said Sonam Arora, treasurer, Chintels residents’ welfare association.

Meanwhile, JN Yadav, Chintels senior vice-president, said they have agreed to pay ₹6,500 per square foot along with the actual stamp duty and the value of interiors, as determined by a government appointed valuator.

“In case of the second option, we will wait for the report of the CBRI and then proceed as directed whether it be repair or rebuilding. Reconstruction will be done within 36 months after all approvals are obtained. As far as repayment is concerned, it will be done within four months -- 25% of the settled amount per month -- for the residents of Towers D, E and F,” he said.

Yadav said, “Now, we request that our registries be opened as soon as possible so that our affected cash flows can be normalised.”