30-Jun-2025 |
Sh. Ashish Kush, Planning Executive and Ms. Asha, Chartered
Accountant briefed about the facts of the case.
Sh. Purushottam Grover (AR), Sh. Anitesh Singh and Sh.
Venkat Rao (Advocate) are present on behalf of the promoter.
1. The promoter submitted an application for
registration of the project under Section
4 of the Real Estate (Regulation and Development) Act, 2016 (hereinafter referred to as "the
Act") with interim RERA, Panchkula, wherein the promoter declared the
timeline for completion of the project as 31.03.2021, in accordance with the requirement
under Section 4(2)(l)(C) of the Act.
2. In view of the disruption caused by the
COVID-19 pandemic, this Authority, through its directions, granted an automatic
extension of six months in respect of registered projects where the validity of
the registration certificate was due to expire on or after 25.03.2020. Consequently, the validity of the
registration certificate in the present case stood extended up to 30.09.2021.
3. As per Section 6 of the Act read with Rule 7 of the Haryana Real Estate (Regulation
and Development) Rules, 2017 (hereinafter referred to as "the Rules,
2017"), the promoter was required to apply for extension of registration
at least three months prior to the expiry of the registration certificate, in
case the promoter fails to complete the project within declared time period
under Section 4(2)(l)(C) of the Act. However, the promoter failed
to apply for such extension within the stipulated timeline.
4. Instead of applying for an extension, the
promoter submitted an application on 12.07.2021
seeking de-registration/surrender of the project, citing poor market
response due to change in policies and market scenario, and the fact that most
of the units remained unsold. It was further stated that the promoter intended
to avail the benefits of the Transit Oriented Development (TOD) policy, for
which approval was still pending.
5. Subsequently, two more applications were
filed by the promoter on 07.10.2022 and 04.03.2024 for de-registration/surrender of the
project. The Authority issued a communication dated 17.05.2024 pointing out certain deficiencies. It is
pertinent to note that the Act, 2016 does not contain any provision for
de-registration of projects after grant of registration.
6. Thereafter, the promoter obtained revised building plans with increased Floor Area Ratio (FAR)
under the TOD and Transferable Development Rights (TDR) policies, vide Memo No.
ZP-400-III/PA(DK)/2025/11992
dated 02.04.2025.
7. On the basis of the revised plans, the
promoter applied for continuation
of registration
under Section 7(3) of the Act, 2016. However, since the
promoter had failed to apply for extension/continuation of registration within
the prescribed timeline, a late
fee was imposed in
accordance with the applicable regulations. The AR of the
promoter states that the deficit fee (including late fee) of Rs 9,33,83,202/- has been submitted
on 23.06.2025 and the deficit documents were also submitted on 27.06.2025.
8. In compliance with the due process, a public notice was published in three newspapers,
namely, The Times of India (English), The Tribune (English), and Nav Bharat Times (Hindi), dated 23.05.2025, inviting objections from the public
till 05.06.2025 regarding the application of the promoter
for registration to remain in force under section 7(3) of the Act, 2016. No
objections have been received till date.
9. The promoter submitted a list of 221 allottees, of whom 220 allottees have either been
settled/shifted/refunded,
and only one allottee remained, in respect of whom an alternate unit
was directed to be allotted as per the Authority’s order dated 25.03.2025.
10. A second public notice was thereafter issued on 12.06.2025 in the same newspapers, inviting
objections from erstwhile allottees till 20.06.2025.
No objections have been received in response to this notice either.
11. The promoter was under obligation to
complete the project by 30.09.2021 including the COVID-19 extension period as
delineated hereinabove. However, despite obtaining building plan approval as
early as 29.09.2008, the promoter failed to commence any construction activity
on the project site till date. Furthermore, the promoter did not complete the
project within the declared timeline, including the COVID-19 extension period,
thereby violating Section 4(2)(l)(C) of the Act. Consequently, a Show Cause
Notice bearing No. RC/HARERA/GGM/EPIN/7(3)/133 (Show Cause) dated 15.05.2025
was issued to the promoter for violation of the said provision. Moreover, the
promoter, during the course of the project, created third-party rights by
allotting units to 221 allottees, thereby affecting interests of allottees and
invoking the protective intent of the Act. Although all these allottees have
been settled/shifted/refunded, except one for whom an alternate unit was
directed to be provided as per the Authority’s order dated 25.03.2025. The fact
remains that third-party rights were created in the absence of actual
development on site. Such conduct reflects a serious breach of the promoter’s
statutory duties and regulatory commitments. Given the inaction and failure to
adhere to the project timeline, despite regulatory approvals being in place,
the promoter is squarely liable for penal action under Section 60 of the Real
Estate (Regulation and Development) Act, 2016, for contravening the terms and
conditions of the registration, particularly by declaring project timelines
without any intent or action towards timely execution. Therefore, the Authority
imposes a penalty of Rs. 25,00,000/- for non-compliance with the timeline
stipulated under Section 4(2)(l)(C) of the Act for which a separate detailed
order shall follow.
12. In
light of the foregoing facts, it is pertinent to note that the licensed area in
question has already been registered by the interim RERA, Panchkula, and
despite the lapse of several years, no construction activity has been initiated
at the project site. While the promoter has now obtained revised building plan
approvals on 02.04.2025 under the TOD and TDR policies, the underlying land is
same as previously registered. The Authority observes that the Act does not
contain any provision for de-registration of a project once registration has
been granted, nor does it permit re-registration of the same land as a new
project. Therefore, keeping in view the facts that (i) construction has not yet
commenced, (ii) all allottees have been settled except one, and (iii) revised
plans have been approved, the only lawful and viable course available to the
Authority is to consider the promoter’s present application under Section 7(3)
of the Act, 2016, which permits continuation of the registration, subject to
satisfaction of all stipulated conditions, ensuring regulatory compliance and
safeguarding the public interest.
13. In view of the above, it is established
that the promoter failed to complete the project within the declared timeline
in violation of Section 4(2)(l)(C) of the Act, and did not apply for extension
of registration within the statutory period. Instead, the promoter sought
de-registration/surrender of the project; however, it is reiterated and
emphasised that there is no provision for de-registration of a real estate
project under the Act of 2016. Considering that no allottees remain in the
project, the building plans have been revised and approved, and no objections
have been received pursuant to the public notices, the Authority is inclined to
allow continuation of registration under Section 7(3) of the Act. This is,
however, strictly subject to the
following conditions:
·
The
promoter shall deposit a penalty of Rs. 25,00,000/-
for non-compliance with the timeline stipulated under Section
4(2)(l)(C) of the Act.
· The promoter shall submit the following
approval within a period of 4 months from the date of issuance of the continued
registration certificate:
o Fire Scheme Approval,
o Approved Service Plans and Estimates, and
· Tree Cutting Permission shall also be submitted prior to any
cutting of the trees.
· The continuation of registration is
granted without prejudice to
the rights of existing or erstwhile allottees under Section 18 of the Act.
· Further, conditions as prescribed in the
continuation registration certificate.
16. The Authorized Representative (AR) of the
promoter is also directed to declare details of ongoing litigation in relation
to real estate projects developed or being developed in the State in the
preceding five years, as required under Rule 14(1)(a)(iii) of the Rules, 2017,
in the format prescribed under Annexure-C of the Rules, 2017.
17. The certificate shall be issued after rectification of all deficiencies, including Corrections in the Online DPI, and Submission of the penalty amount of Rs. 25 lakhs for violation of Section
4(2)(l)(C) of the Act. |
CONTINUING APPROVED |
View Order |
23-Jun-2025 |
Sh. Ashish Kush, Planning Executive and Ms. Asha, Chartered
Accountant briefed about the facts of the case.
Ms. Priyanka Miglani (AR), Sh. Purushottam Grover (AR), Sh.
Anitesh Singh and Sh. Venkat Rao (Advocate) are present on behalf of the
promoter.
Sh. Pradeep Aggarwal (Advocate), Sh. Arjun Aggarwal
(Advocate), Sh. Prince Singh (Advocate) and Sh. Inderjeet Singh (AR) are
present on behalf of M/s Assotech Realty Pvt. Ltd.
The advocate on behalf of M/s Assotech Realty Pvt. Ltd.
stated that the title of the land is not clear with the promoter as litigations
is pending with both in Civil Court at Gurugram as well as before the Hon’ble
Supreme Court.
The AR of the promoter stated that the complainant company
has already exhausted all legal remedies before the Hon'ble Civil Courts,
including the Hon'ble Trial Court and up to the Hon'ble Apex Court, and has
been unequivocally denied any relief at every stage. Hence, at present, there
is no stay or injunctive relief of any kind granted in favor of the complainant
by any judicial forum. On the contrary, while applying for and obtaining the
certificate, the answering company had fully and transparently disclosed the
details of the ongoing cases including those now referred to in the present
complaint, the list of litigations submitted along with the application.
An
application for registration of the project was filed by M/s Emaar India Limited (Formerly known as Emaar MGF
Land Pvt. Ltd.) under section 4 of the Act, 2016 for
registration of the IT Park Colony project comprising an area of 5.65 acres falling
in license No. 34 of 2008 dated 23.02.2008 issued by the Director General, Town
and Country Planning Department, Haryana.
And
whereas after scrutiny and compliance of the requisite approvals, the Authority
approved grant of Registration Certificate to the said Promoter vide
Registration No. 58 of 2017 dated 17.08.2017. In the said application submitted
by the Promoter under section 4 of the Act, 2016, the
promoter had declared the timelines for completion of the project as required
under section 4(2)(l)(C) of the Act, 2016 as 31.03.2021 + 6 months covid =
(30.09.2021). However, the promoter failed to complete the
project by the committed timeline declared under section 4(2)(l)(C) of the Act,
2016.
Further,
the promoter applied for de-registration/surrender of the project on 12.07.2021
stating that the project was launched but due to
change in policy and market scenario, there was lukewarm response from the
customer and most of the units remain unsold. Later on the Government issued
TOD policy and the promoter was interested in availing the same but the
approval remain pending. Thereafter, two more applications dated 07.10.2022 and
04.03.2024 were submitted in this regard wherein the Authority conveyed some
observations vide letter dated 17.05.205 but the matter remain pending. As
neither the promoter has complied fully against the observations nor there is any
provision of de-registration in the Act of 2016.
Now, the promoter obtained the revised building plans
with increased FAR under TOD and TDR policy and applied for continuation of
registration of project u/s 7(3) of the Act of 2016.
Further, The AR of the promoter stated the deficit
documents alongwith the deficit fee is being submitted today.
The matter to come up on 30.06.2025. |
ADJOURNMENT |
View Order |