KANCHAN LAROIYA vs CZAR BUILDWELL PVT LTD

HARERA GURt]GRA[/ BEFORE THE HARYANA REAL ESTATE REGULATORY AUTHORITY, GURUGRAM Complarnr No.55c4 of 2021 5594 of 2023 29.O4.202+ It/o ' 176, Pocket 7, Sector 12, Dwarka, New'D.lhi.

Versus Nl/s Cza.

Buildwell PvL Ltd Regd.

Office at: 302'A, Global Foyet Sector,l3, Coll Cou.se Road, curugram- 122009 CORAM: ShriAshok SaDgwan APPIARANCE: Kanchan LaroiyaIComplainant in person] l ORDER The present complaint has been filed by the complainant/allottee under section 31 ofthe Real Estate (Regulation and Development) Act,2016 (in short, the Act) read with rule 28 ot the Haryana Real lstate (Regulation and Development) Rules, 2017 (in short the Rulesl lor violation ofsection 11(4)(al oftheAct wherein it is int?r alra prescribed that the promoter shall be responsible for all obligations, responsibilities and functions under the provision of the Act or the Rules and regulations made thereunder or to the allottees as per the aereement for sale executed irterse.

Complainant R€spondent *HARERA S- r,rnrnnrvr A.

Uniiand proiert r€lat€d details 2.

The particulars of unit details, sale consideration, the amount paid by the complainants, date olproposed handing over the possession, delay period, ilany, havebeen detailed i. the followins tabular form: Compla nt No.5594 oi202 i Sr, I Mahir.

Hohes, Sector 104, Gurugram, ?

Affordable H ousi ns Scheme project, 3 66 of2021dated 07.09 2021valid up to RERA Registered / not GCM / 504 / 236 / 2027 / 7 ?

D AT ED 25.70.2027 {lalid nD to 02.12.2025\ 04.t2.2027 IAs onDaseno.

15 ofcomDlaintl T3-1107, towerT3 IAs on Dase no 15 ofcomDlaintl Date ofBuildiDE plan 25.10.2027 (as p€r the information providedbythe respondeDt on website at the time of relistration of Droiect) Date ofenvironmental 27.04.2022 (As Der the websiie ofSEIAA, Har,/ana) * HARERA, s-c,unrc,nnur Complaint No, 5594 oI2023 B, Factsofth€ complaint: The complainant has madethe lollowing submissionsr- 10 tn absence ol execution oJ the agreenent uh. eenent uh.let Aflordoble housing ptuject, the possesslon clau* given uncler the Afforddble flo6inq Policy 2073 would prevail.

Section 1 (iv) of AJlordobte hausing polic!

2013 whnh prevides os All such projects shall be requred to be necesanly completed withh 4 yeo.s lrom rhe apptuvol of btilding plons or gfdnt oJ difonmentol cleamnce, whichevq is latar.

This dote sholl be rcfered to os the dote of conmencenent of prcject for the purpose ol this palicy.

The lkense sholl not be renewed beyand the soid 4yeo6 period Jran the date of commencement of Dfoiect ll Due date otdelivery oi 27.04.2026 lNote: due date ol possessron is calculated from the date of cnvironmcnt .learance i.e, 27.04.2022 beins later.l 12 'rni,l sal...nsid.r,iion Cannot be ascertained 13.

Totalanount paid by the 16,62,00t1- IAs p€r the bank statement of rhe l4 occuDahon cert(rcare ls Rcquest tor surrender 22.09.2022 HARERA GURUGRAI\I That the complainant is an allottee within the meaning ofSeciion 2 (d) ofthe Real Estate (Regulation and Development) Act,2016.The respondent companyi M/S Czar Buildwell Private Limited is a private limited company incorporated company under the Companies Acl 1956 and is ,nter al,a engaged in the business of providing real estate services.

That the complainant while searching for resident,al apartment were lured by the advertisements /brochures /sales representatives of the company to buy a house in their project namely "MAHIM:FUTURE OF URBAN LIFESTYLE" project at Sector 104, Gurugan\ Haryana.

The agents and officers of the respondenfs companytold the complainant about the moonsh,ne reputation of the company anl the agents of the respondent's company made huge presentadons about the project mentioned above and also assured that they have delivered severalprojects in the national capital region prior to this project. s project.

The respondent handed over one brochur€ to the complainant, which projected a very interestinS laodscaping of the sa,d project and went on to incite the complainant to part w,th th€,r hard-earned money by way of making payments.

The respondent claimed that they have taken al! due approvals. sanchons and Governnent perm,ss,ons towards development and construct,on of "Mahira:Future of Urban Lifesiyle" projectand after representing through brochures, about the facilities to be provided, the respondent managed to ,mpress the complainant, who then decided to invest their hard' Comnlarnt No 55q4 .lll)l l *HARERA sS- crnrr,nnv d t.

Complainr No 55c4 or 202l earned money ,n purchasing the unI at "Mahira:Future Ot Urban That the complainaDt on varjous represenrations and assuranc.s made by the respondent, booked the .esidential flar by vidc application no 17400 and subsequently thc demand by rhc respondentwas raised aorthe bookingamount, which was pard by the complainanr amounring to {1,29,060/ by vids chauan no DP49551 & DP49555 for the allotment oi residential flrr in affordable housing colony "MAHIRA HOI\.{ES' That the compl:jnant received welcome letter dated 04.12 2021 along with the iuture payment plan for the unit bearing no t':j I107,'lo$'er'T3 situated at sector 104, Gurugranr, Ilaryand, tndi.). 'lhat thereafter the compla,nant while keep,ng the purview oi payment plan made a payment of 15,32,941l- for the unit rn That the complainanr made a paymenr of {6,62,001/,.

1t is pertinent to mention that builder buyer ag.eement has not been executed for the unit in question between complainant and That complainant being induced by the respondent, conractcd thc oificialrepresentatives ofrespondent company many tinr.s to 8et the iniormation of constructjon prosress and the same was ignored intentionally and deliberately. iberately.

It is peninent to mention that the complainantvisited the construction site and was shocked to see the land where project had to constructed was empty/barren land as no construction activity was gojng C.

4.

D, 5 Complarnt No 5594ot2021 frHARER+ P-GLIR!GRA[/ nevertheless not even a single worker/labour was at consrruction h.

That the complainant has surrendered the unit on 22.09 2022 alongwith allthe required documents for relund and cancellanon It is further more stated that the respondenr conrpany act€d lraudulently oD various occasion to extort the hard earncd nron.y ot the complainant by securing money ta for the barren/.nrpry land by the name of thcproject' Mahira llomeJ asthe rcspondenr failed to achieve its const.uctior milestone. i.

That the present complaint has been filed in order to seek the reiund of the unit along with the int€rest at prescribed rate on already paid money and otherreliei Reliefsought by the complainant: 'Ihe complainant has sought lollowing r€lief[s]: a 1o djre.t the respondent to return the amount pard wrth rn!.rosl irr respcct oithe allotted unit with rnterest at rhe prescribed rate Reply by th€ respoodent 'lhe present complaint was filed o.

AL12-2023 and registered as complaint no.

5594 of 2023.

As per the registry, complainant has sent copy ofcomplaint along with annexures through speed post as well as through email.

On 13.03.2024 the counsel lor the respondent appeared and filed power olattorney and requested lor a short adjournmcnt fo. filing the reply.

The request was allowed and i{as directed to frle reply within three weeks i.e., by 03.04.2024 in the registry, subjcct to last opportunity..

On 24.44.2024 respondent put in app.arnnce rnd submitted that he wishes to file writren a.gumenrs in the matr.r, SHARERA S. eunuennur Complaint No.5594 of 202l E, accordingly the authority gave liberty ro the respondenrto file wrtten arguments within two weeks with anadvance copy to thecomplainant. mplainant.

Thesamehasalsonotbeencomplied bythe respondent.

6.

Copies ofall the relevant docum€nts have been filed and placed on rhe record- Their authenticity is not in dispute.

H ence, the complaint can be decided based on these undisputed documents and submission made Iurisdiction of the Authority: The authority obseN.s that it has ter.ito.ial as well as subled mau.r turjsdiction to adjudicate rhe presenr comptaint for the reasons Hivcn Be t*ponsible far oll obligationt rcsponnbilities ond functions under the povisiohs ofthis Act o. the tules onA regulations node thereunder or ta the allottee as per the asreenent for ele, or to the asso.iotion of ollottee, os the E.

I Territorial iurisdiction 8.

As pcr notification no. r/92/2077.7'tCP dated 14.12.2017 issued by 'lown and Countly Planning Department, the jurisdiction ofRealEsrate Regulatory Authority, Gurugram shall be entire Gurugram Drstrict for all purpose with oflices situated in Gurugram.

In rhe presenr case, rhe project in questjon is situated withi. the plann,ng are:r ot Gurug.am d istrict.

Th erefore, this authority has complete territorial ju risd ictio n to deals,ith the present conrplajnt.

E.ll Subiect matter jurisdiction 9.

Seciion 11(4)(a) of the Act, 2016 provides thar the promoter shall bc responsible to the allottees as per agreement lor sale.

Section 11(4)tal is reproduced as hereunder; *IARERA S- crnrnnnrl ComDlaift N.

5594 .l?071 .ose ho! be, tillthe canvelance aloll the opunnents, plats or blildings os the cose no! be, to the olknEe, a. the to the dssoctottan of altottee ot the .ohpetehtourhority, os the coseno! be) Serrion 34.Fundion{ ol the Authorty: 314 aI the ^u pravides to ensure conpliance ol the ohtigottonsLastupaD thc ptanote. thealla&ee anA thc rcot eltntu.lcntt Lnd.t thts An ona the tules a d rellututt)n\ nodeLhereunder 10.

So, in vicw oithe provisions olthe Act quoted above, rhe autholty h. utholty h.s complcte )urisdiction to decide the complaint regarding non- compl'ance ofobligatjons by the promoter leaving aside compensation which is to be decided by the adjudicating officer ii pursued by rhe complainantat a later stage.

11. t-urther, the authorty has no hitch in proceeding with the compiainr and to grant a relief of refund iD the present matter in view oI the judgcnr.nt passed by the Hon'ble Apex Court in l'/ewtech Promoters a d Developers Private Llmlted Vs Stote ol U,P, and Ors.

SCC Online SC 1044 decided on 71.71.2021 and lollowed in M/s Sana Realtors Private Limited & others y/s Union ol tndia & others SLP (Civit) No- L3OOS ol2O2O decided on 72.05.2022 wherc,n ithas been laid down "86 F.an the scheme ofthe Act ofwhth a detdited tekrcn.c har heeh node ond toking noE ul powe. of arljudrcotian dcltnedtc.l with the regLlatory aLthorit! and adjudt.otihg allcet, whuL linolly Lulls out k thot olthoush the A.t tndicate: the al\tini etpressions hke teluht!, Le.e|t, penaIty ond campensotion, a conjalnt rcad)nI olsc.Lo|s tB and l9.teatu noh|ests thoLwhdi it.ones ta reJunt al thc dtnount, an.l nrtetest an the telund odoort, at di'e.tihg poynent of lnte.en Jor delolcd delivcry al posestan, ot p.hatt! ahd inretesL thetenn, it r the resulota.! outho ty whlch hos the power ra etonine and deternie the.utcohe olo camplatnt.

At the sane ttne, when it canes to a queibn ol see ktns th e re hef of ad jud I tns conpen sa ttan a n.l I nte rctt thctcon un.lct Sc.tions 12,14,1A and 19 the ot1)Ldi.aLhg PaBe a ol l2 *HARERA -.S- cltnucnlv Cohplarnr No.5594 ot 2023 oflics exdusivelr hos the power to deternine, keepins ih view the collective reoding of Section 71 reod with Secrioh 72 of the Act if the adjudEonon und..

Sections 12, 14,1a ond 1 9 ot her thon coh pen sa tion os e nv i to ged, iI e xt.nded to L\e odtud attng or'p. o. ptored .hat" tn out flpw, no! inrend to dpond the onbit and rcope oI th. ope oI th. powe6 onrj lunctians ol he od)udicatins olfcer undet section 71 ond thdtwoutd beagointtthe nondote al the Act 2a16 12.

Hence, in view oi the authoritative pronouncement of the Hon'ble Supreme Court in the matter of Mls Newtech Promoters and Developers P.lvate Limited ys StaE ol U.P. anit Ors. and M/s Sana Reoltors Private Limited & others V/s Unlon ol lndia & others (iuproJ, the authority has the iurisdicnon to entertain a complaint seeking refund ofthe amouft and lnterest on the amount paid by him.

F.

Findingson rellef sought by the complainant: F.l To direct the respondent to rehrri the amount pald wltlt interest in respect otthe allotted uDit with iDterest etprcscribed mte.

13.

The complainant vide welcome letter dated 04.12.2021was allotted a unit bear,ng no.

T3-1107 in the project namely "Mahira Homes-104" located in sector-104, Curu$am belngdeveloped by Nl/s Czar tsu,1dwell Pvt.

Ltd.

Further, the complainant bas paid an amount of {6,62,001/-.

The complainant in its complaint further stated that no work on p roject site was observed despite making payment 14. lt is pertinentto ment,onthatthe authority on 28.05.2022 iniriated suo- Motu action against the promoter under section 35 of the Act, 2016 based upon the site visit report submitted on 18.05.2022 wherein it is clearly stated that only excavation workfor tower 2,3 & 4 was started at site.

Moreover, on 17.05.2022 the DirectorTown & Country PlanninS blacklisted the said developer from grant oi license on account of submitting iorged and fabricated bank guarantees and also forged Pagc 9 of12 Ir HARERA GURUGRAN/ signatures ofthe bank officials on the bank guarantees being submitted by CZAR Buildwell Pvt.

Ltd which was subsequentlv withdrawn by the department on 21.07.2022 subject to lulfillment ol certain conditions Also. on 19.07.2022 all the accounts were frozen bv the authority due to non compliancc ot the p.ovisions of the Act 2016 Frnallv on 06 09.2023 the authority initiated suo moto . suo moto .evocation procecdings under scction 35 oi the Act, 2016.

Thereafter, the authority vide ordcr dared 11.03.2024 revoked the registration certlficate ol the proj'ct under section 7[1) of the Act, 2016 and accordinglv the respondent company shall not be able to sell the unsold inventories in the prolcct and also the accounts are trozen therefore, this may amount to discontinuation of business.

15 lhe author,ty considering the above mentioned facrs opines that although the due.latc olpossess,on has not lapsed vet and scclion 1ll olrhe Act.2016 is invoked ilthe promoter is unable to handover lh' poss.ssion ol the unit as per the tenns of the agreement dut to .liscontinunncc olhrs business as developer on sccount of suspension or revocation ofthe registration underthis Act o' any other r'ason thcn the complainant shall be entjtled for entire refund of the amount paid to the respondent along with the prescribed rate of interest' The relcvant portion is reproduced he.ein bclow for the r'ady reterencc: Cnmplarnr No 5594 uf 2Ll2l " sectlon fi: Raum ol amfunt & codp.nsotioo: l1l tl the pro otet loils to canplete ot is unoble to qive bo\seseon ol od opannent plor or bu ding.' to',h otcotdonrP wtth thP.etn\ol the aq,?ede tot 'olP o., o: the rc\? toj bp- auu.onplet"d bv .ne dot? 'DP tficrl tnt due o dis\onnnuon.P ol htt bL:'l.tt o' o deteloper on oioLrt ol s6pension or revocatioa orthe reektrut'on undet this Acr o. hr ony other rason page t O or 12 *HARERA S- clrnrrennu Complrrnr No.559+ ot 2021 he shdll be lioble on denond to the allattees in cose the ollonee wishes to witht)row lron the prcirt, without prejudice to ony othet renedy atoiloble, ta .etutn the anount rcceiveti by hih ih rcspect ol that oportnena plot building, os the case no! be, with interest ot ,uch .at. as ndy be prescnbed ih this behalltncluding conpentonon tn oe hon.4 a'p o ed rade't^A't 16.

The authoriry is oithe view that since vide order dated 11.03.2024 the regist. he regist.ation certificate oithe project stands revoked under section 7( 1) oltheAct,2016 tberefore, the promoter cannot carry out the business in presence of the said circumstances, also due to the promoter's serious violations, there seems no.lossibility of completing the said project by the due date oreven beyond it in near luture and therefore the authority is otthefiewthatthe complainant is entitled to his riSht under section 19(4) to claim the reiund of amount paid along w'th interest at prescribed rate from the promoter.

Accordinglv, the authority directs the respondent to reinnd the pard_uP.rmount ol 16,62,001/- recelved by it along with interest at the rate of 10.8504 p a' as prescribed under rde 15 ofthe Haryana RealEstate (Regulation and l)evelopment) Rules,2017 from the date ofeach payment tillthe actu.rl date ofrelund ofthe amount.

Directions of the authoritY: Hence, ihe authority hereby passes this order and issue the followinH directions under section 37 of the Act to ensurc compliance ol obligations cast upon the promoter as perthc function cntrusL'd to lhe authority undcr section 34(0: a.

The respondent /promote. is directed to r'ftrnd the amount ie" i6,62,001/- received by it along with interest at the rate of 10.85%p.a. as prescribed under rule l5 ofthe Haryana RealEstate (1. t7 frHARERA S- cuRIGRAIU 18.

19. (Regulation and Development) Rules, 2017 from the date payment till the actual date ofrefund ofthe amount b.

A period of90 days is given to the resPondent to complv directions given in this order and failingwhich legal Complaint stands disposed ot File be consigned to registry.

HI GU ARERA RUGRAM Ttll ,u( I Complaint No.5594 Haryana Real Estate Regulatory Authoritv, Gurugram