A day after the Haryana-Real Estate Regulatory Authority (H-Rera) issued non-bailable warrants against 18 developers, the National Real Estate Development Council (Naredco), wrote a letter to the Haryana chief minister, seeking his intervention in the matter.
Naredco said that arresting the developers will lead to further litigation and many housing projects will remain incomplete.
The developers, against whom the NBWs were issued, said that they will take legal recourse to address the matter. The H-Rera adjudicating officer on Wednesday issued 86 NBWs against developers for not executing orders issued by the real estate authority.
Naredco chairman Praveen Jain, said that issuing NBWs and sending developers to jail is not the solution to the problems being faced by homebuyers and developers. “It will only ensure that developers are not able to complete the housing projects which are already stuck. There will be more litigation and builders will not be ready to take up projects that are stuck. Such warrants are harassment and this must be stopped,” he said, adding that they have sent a letter to chief minister Manohar Lal Khattar and H-Rera chairman KK Khandelwal, seeking their intervention in the matter.
“This letter is brought for your immediate attention for the resolution of some critical issues faced by real estate developers from the adjudicating officer of H-Rera in Gurugram. Currently, developers are being harassed with NBWs and other legal notices under the Rera Act. This will lead to an increase in the number of litigations by homebuyers and thereby disrupt the whole real estate sector. It will also cause delays in delivering the projects on time. It is a matter of fact that the real estate industry is in the process of revival after a long period due to the Covid-19 pandemic and such acts will not help the industry to revive.”
{{/usCountry}}“This letter is brought for your immediate attention for the resolution of some critical issues faced by real estate developers from the adjudicating officer of H-Rera in Gurugram. Currently, developers are being harassed with NBWs and other legal notices under the Rera Act. This will lead to an increase in the number of litigations by homebuyers and thereby disrupt the whole real estate sector. It will also cause delays in delivering the projects on time. It is a matter of fact that the real estate industry is in the process of revival after a long period due to the Covid-19 pandemic and such acts will not help the industry to revive.”
{{/usCountry}}Developers said that they will adopt legal means to meet the challenge.
Dimple Bhardwaj, spokesperson for the Raheja Developers, said that most of the projects in question were refund orders and were nearly complete, but due to lack of infrastructure such as road connectivity, possessions have not been given.
“While we are sensitive to the concerns of our customers, the funds to be utilised for finishing construction work cannot be allocated for refunding some customers at the cost of others and therefore it is being challenged in higher courts. We are trying to resolve our customers’ concerns,” Bhardwaj said.
An official of IREO Developers said that they will appeal against the order in court. “We have already received an occupation certificate for the building concerned. We are ready to hand over the apartments,” he said, adding that they will also make a submission to the H-RERA.
When asked about the concerns of the developers, H-Rera chairman Khandelwal said, “They must comply with the orders and refund the dues to homebuyers. Once this is done, we will look into the issues raised by them,” he said.