HARERA GURUGRAM THROUGH NEERAJ GAUTAM vs CZAR BUILDWELL PRIVATE LIMITED

ffiHARERA ffiGURUGRAM BEFORE THE HARYANA REAL ESTATE REGULATORY AUTHORITY, GURUGMM The Director of T no.

128 of 201.9 Regulation of U thereunder for area measuring Sector-63A, G til Czar Build (ii) Arjun S/o - Pari IDTCP) granted license Development and rules 7976 made ng colony over an f village Behrampur, ,following entities: - [iii) Babita w/o-B [iv) Bhim Singh 57 Singh tan (v) Devin (vi) Giriraj S/o-Lakhpat [vii) ]agat Singh, Bhagat Singh Ss/o-Lakhmichand (viii) Kunal,DevinderS/o-Sevaram (ix) Sheetal D/o - Sevaram (x) Parkash S/o-Sultan Singh (xi) Parvin S/o - Daya Ram (xii) Pooja W /o-lagat Singh Surender, Omprakash Ss/o - Raghbir Suo Motu complaint No.

RERA-GRG-2655-2022 04 OF 2O2O dated 2O.OL.2O2O Name of promoter M/s Czar Buildwell Pvt.

Ltd. (Now known as Mahira Buildwell Pvt.

Ltd.) Name of proiect Mahira Homes 63A 63A, Gurugram Page 1 of 15 Registration No.

Location of proiect Date oforder l,L.O3.2024 ffi ffi rfiqi{ u{i HARERA GURUGRAM (xiii) Ixiv) IxvJ IxviJ [xvii) (xviii) (xix) in collaboration with M/s Czar I Pvt.

Ltd., 302 A, 3.a Floor, Global Foyer, Gurugram-i.

2.

The aforesaid license is gran of five years and is valid upto 26,1,1,.2024, 3.

In pursuance to mpany i.e., M/s Czar Suo motu complaint no.

I Rrne-cnG-2655-2022 Ramkishan, Subhash, Mahesh Ss/o - Ratan Balbir Singh, Bir Singh Ss/o Sumera Rammehar, Rameshchand, fitender Ss/o- Lakhram Sandeep Bhatti S/o-Sevaram Bimla W/o-Sevaram Satish, Pratap Ss/o-Chetram Sher Singh, Ramkishan Ss/o-Mangeram @Manggi Buildwell Pvt. project under Act, 2016 [h consideration, the Real Estate Regula Authority) with the foll n of the real estate and DevelopmentJ rity and after due with the Haryana rth referred to as the S.

No.

Particulars Details 1.

Registration No. .:, GGM/3 BB' / 1.20 / 2020 / 0 4 (04 of 2020) 2.

Date of re'libtlation4',,. ."""'- 20.0r.2020 3.

Expiry of registration 1,9.01.2024 + 6 months COVID = L8.07.2024 4.

Name of promoter M/s Czar Buildwell Pvt.

Ltd.

5.

Name of project Mahira Homes 63A 6. mes 63A 6.

Area of project 4.98 acres Page 2 of15 REM-GRG -2655.2022 HARERA ffiGURUGI?AM 7.

Nature of project Affordable Group Housing Colony B, Location of project Sector 634, Gurugram 9.

Number of towers 5 towers 10.

Number of units Main units- 640, Commercial units- 45 11.

Master (100%) collection a/c 2996201000460 (Canara Bank, Palam Vihar) L2, RERA a/c(70o/o),.1[ d299620L000462 ry (Canara Bank, Palam ViharJ 13.

Free a/c [30%o) 2784201.050721. (Canara Bank, Palam Vihar) 4, However, due to various grave violations by the promoter company, i.e' M/s Czar Buildwell Pvt,l ltd,, the Director Town & Country Planning vide its order dated tZ.Oi.Z:,022 blacklisted the developer company, its directors, shareholders, and other authorized signatorieS from grant of license under the provisions of Act B of lg75 in the future.

The orders stated that: "Whereas, on QCCount of commtitttng Various grqve violqtions in license no.

12B of 2019, 31 of 2019, 24 of 2020 and 66 o.f 2021 gronted for development of offordoble group housing colony in Sector 63-A, 103,9S & L04, Gurugram, forged and fabricated bank guarantees ond also forged signatures of the bank officials /offtcer on the bank guarantees which was submitted by CZAR Buildwell Pvt.

Ltd,, at the time of grant of license no.66 of 2021 and replacement of old bank guarantees in lieu of fresh bank guarantees submitted in three other licenses as indicated above which were issued to Mahira Buildtech PvL Ltd. and czAR Buildwell Pvt.

It has been accordingly decided to blacklist the developer company i.e Nlahira Buildtech Pvt.

Ltd. and czAR Buildwell Pvt.

Ltd., ifs Page 3 of 15 HARERA ffi"GURUGI1AM directors, shareholders and other authorized signatory from grant of any new license under the provisions of ActB of 1g7s in future.

Accordingly, all concerned are hereby directed not to process any application of above said company, its Directors and shareholders for grant of license under the Act ibid.

Act ibid." 5' As the promoter was blacklisted for committing various grave violations of the terms of the license, the Authority took suo-motu cognizance of the issue relating to the affairs of the promgler of the project and initiated inquiry under Section 35 of the Act of 20l6rand,accordingly, to protect the interest of the allottees, issued letter aat9u..1o:o si;.zozzdirecting LDM, canara Bank, Gurugram to freeze the bank'i{tuq",iir of the promoter in all projects including Mahira Homes 63-A whicf, Wg5e covered in the blacklisting order dated 17.05.2022. ,,, ,in;;;,',11r;.r. . ';'l i, .

6.

For the purpose or.oron.ting iireri.iar.y inqrit]irngineering Executive and Executive Engineer (Monitoring) of the Authofuvisited the site of the I', :i : proiect on 18.05.2 di2 apda'iepbrt 4bout ilre prrysicalitutr. of construction was submitted by them to the Authority ar'p.. the report ,rurittua, trr. physical progress of cbnsirqCtion wort<, on ihu site of the project was found to be approximately 5-7 o/o only aird'conitruclion at the site did not seem commensurate to the payments withdrawn from the bank accounts.

The Authority further observed that neithr.,,thle QpRs (quarterly progress reports) nor the audit3d statementLof alcbunts, had been submitted by the promoter with the Authority in terms of section + al trre Act, 20.1.6.

7 ' Keeping in view the reasons recorded above, the Authority vide its notice dated 28.05.2022 freceived bythe promoter on 30.05.2 0zz) called upon the promoter to furnish the following information within 7 days from the issuance of the notice: a' The total amount so far collected/realized from the allottees. b.

Allottee-wise schedule of payment received. c.

Amount of work done so far at the site.

Page 4 of 15 d. e.

Percentage of physical progress achieved.

Land cost of the project and proportionate Iand cost of a ercentage of physical progress. progress. f, The details of the Bank Accounts where the amount realized from accountant in allottees has been deposited/received. g.

The withdrawals from the separate RERA Account where 70o/o of the amount to be realized from allottees is mandatory to be deposited. h.

The proof of the separate account after it is certified by an architect, and a chartered drawal is in proportion to the percentage The detai rate RERA Account and wh the separate RERA realized from ons of Section accountant, a statement unts of the project for FY collected for j. k. propo compliance with the f the project. l.

Wherever there has been devi variation from the provisions of Section 4t2)(l)[D) and the tion relating to the same. m. copy of documents submitted to Director Town & country Planning, Haryana in compliance with rules in part IV of the Haryana Development and Regulation of Urban Areas Rules, I97 6.

The Authority gave an opportunity of hearing to the promoter on 4t2)tr)tD of accounts 201.9 -20 and 2 02 tl -2021,, Certificate of the Chartered 1.0.06.2022.

Page 5 of 15 ffiHARERA fficllRuGRAM Suo motu no.

I npRe-cnc-2655-2ozz HARERA Suo motu complaint no.

I RERA-GRG-265S -Z0Zz GURUGI?AM B.

The Authority in its proceedings of the hearing dated 1,0.06.2022 observed that the reply to the notice submitted by the promoter was not in order.

Hence the Authority, exercising its powers under Section 36 of the Act of 2016 on being satisfied that an act in contravention of the Act,201,6 or Rules or Regulations made thereunder had been committed and continued to be committed, ordered restraining the promoter, withdrawal from bank accounts i.e.

Master Account/Separate RERA Account and the free account or any amount until the conclusion.qf its enquiry or further orders.

The promoter was further restrained from creating any third party right by way of mortgage/ loan or any othei rninngr on the project land, sold and unsold I1,;=,,$t:.itr, units further, and appointed M/s'. nted M/s'.Gif nd Mark & Associates to conduct a forensic audit of the project account on the points mentioned in para 7 above. g.

During the course of forensic audit of the project and proceedings related to the suo- motu complaint, it cafib to the notice of tnu Authority that as per the affidavit provided bythe promoter, the prodoterLhad changed the bank accounts of the project without prior approval 6@ the Authority and the promoter was in default for operating concurrently RERA accounts with two banks at the same time, It dlso tame io the notice of the Authority vide site visit report dated 10.02.2023 apd,subsequent representation dated 23'02.2023 by some of the allottees that the promoter had obtained the revised building plan of the project without prior consent of the 2/3rd allottees in violation of section M(z) of the Act of 201,6.

Accordingly, the variations as observed with respect to the registration certificate are as below: Particular Detail as per registration certifi cate Details as per Revised Plan Number of towers 5 towers 4 towers Page 6 of 15 ffiHARERA ffiGURUGRAM 10.

Meanwhile, 44eB/LC/37se/ withdrew the conditions: A.

The colonizer payment in all these projects and shall y additional installment till proportional completed at received by it are gram.

B.

The cance izer against non- payment by allottees on account of disproportionate demands made by it shall be withdrawn by the colonizer within a week and an ATR in this regard shall be filed with STP, Gurugram.

C.

The colonizer shall install a signboard at the site showing the detail of flats mortgaged in favor of DTCP.

Suo motu aint no.

I nene-cnc-2655-2022 No. dated LC- 9 dated 21,,07.2022 bject to the following Main units- 636, Commercial units- cannot be determined Main units- 640, Commercial units- 45 Number of units 92002005 1375435 (Axis Bank, Patel Nagar, Gurugram) 299620t000460 (Canara Bank, Palam Vihar) Master collection a/c (100o/o) 920020051.

920020051.362905 [Axis Bank, Patel Nagar, Gurugram) 2996201000462 (Canara BarIE: : Palam RERA a/c (70o/o) 92002005146554t (Axis Banh Patel agar, Gurugram) Free a/c (300/o) PageT of 15 2784"201.050721 (Cana.ra Bank, Palam Vihar) HARERA ffi"GURUGRAM 1L.

0n perusal of the forensic audit report dated 22.08.2022 submitted by M/s Grandmark and Associates, grave lapses/ violations on the part of the promoter were observed as listed below: 1, The auditor submitted in its report that in the project'Mahira Home- 63A', several withdrawals are made in breach of the provisions of the Act of 2016, and a few of the transactions are questionable and it appears that home buyers' money has been withdrawn in violation of provisions Section 4(2)(l)(D) of l.he Act of 201.6.

Further, 1st & 2nd proviso to Section 4(2)(l)(D) olr,,tlr.g, Act of 201,6 provides that the aiU.UbUn, shall have to be in proportion to withdrawal from the sepai5r!.,i,r r ,,,;p,r,s the percentage of completiod, 6f thi! project after it is certified by an 2. engineer, an architect, and a charlered accountant that the withdrawal is in proportion to the percentqge of completion of the project.

The Developer was in default of operating concurrently with two banks account at the same time as the Canara bink was in operation from il' ' ;irr';--- 30,06.2020 to 1"7.1.2.2020 while axis bank.!a1c are in operation from 04.08.2020 so dual accounts were in operation for a period of 4 % month from 04.0 b.Zozo to 77,12.2020, which is a serious deviation of the RERA provisions. ' 'r: The total funds received of Rs.90;!8,63,, 6v /- in,RERA T0o/o account has been transferred by the developer into 30% FREE Account based on the written request made from time to time in both Canara and Axis Bank.

This conduct bythe developer is in grave contravention of the RERA Act, 201,6.

The developer also failed to comply with the submission of the Quarterly Progress Report & annual audited report for the project. e project.

The developer failed to get prior approval from HARERA for change/opening the bank account under Section 4tz)(l)tD) of the Act of 201,6.

Suo motu complaint no.

I RERA-GRG-Z65S -Z0ZZ 3.

4.

Page 8 of 15 Suo motu complaint no.

I RERA-GRG-2655-2022 ffiHARERA ffiGURUoRAM l2.Accordingly, a show cause notice dated 29.06.2022 for penal proceedings under Section 60 of the Act of 2016 for violations of various provisions of the Act of 2016 and specifically to the Section a(2)(l)(D) of the Act of 2016 and HARERA Gurugram Bank Accounts for the Registered Projects Directions ,20L9 was issued to the promoter by the Authority" 13.The promoter submitted a reply dated 1,6.07.2022 w"r.t the show cause notice dated 29.06.2022 and a resolution plan for the completion of project.

14.

On perusal of the reply and resolutfon plan submitted by the promoter as well as the comments and final iirop,O,lafi recotnrle ndations of the forensic ' i itUteit f tne allottees who have invested auditor it was observed tn" tnt.'*..riii:"':') iri'r' in the project will be served Onti if the construction work is resumed immediately.

Further DTCP, Haryana vide its order dated 21,.07.2022 ordered withdrawal of its earlier o;der dated 1,7.05,2022 regarding blacklisting of the firm M/s Czarl Buildwell Pvt.

Accordingly, the Authority decided tp de- freeze the bank accounts of the project "Mahira Homes 634" on the request of the promoter vide order dated 19.09.2022 subject to the following conditions: i.

The promoter shall bring back the unauthorized withdrawn amount and shall deposit the loan made to its group companies and associates and other nqrn-'project related withdrawals to the RERA account within six m0hths. ii.

The promoter Shall follow construction-linked payment in the project and shall not demand any additional instalment till proportional constructions against payments already received by it are completed at the site to the satisfaction of STP, Gurugram as already directed by the ted by the licensing authority i.e., Director, Town and Country Planning, Haryana. iii.

The promoter is directed that withdrawal from the separate account shall have to be in proportion to the percentage of completion of the project after it is certified by an engineer, an architect, and a chartered Page 9 of 15 HARERA ffi-GURUGRAM accountant that the withdrawal is in proportion to the percentage of completion of the project. iv, The promoter is directed to deposit a hundred percent of the amounts realized for the real estate project from the allottees, from time to time, in a separate RERA account maintained in a scheduled bank to cover the cost of construction and the proportionate land cost and shall be used only for that purpose. v.

The promoter to enter into an agreement for sale with the allottees within three months in the Haryana Real Estate 20L7, and amended as per [Regulation and Develo requirements and a ity, if not already executed. vll. vl.

The promoter -related expense shall not be made The com the authority and the promoter is ial area till further orders as a In addition and audited annual statements of shall also submit a monthly progress re ra Homes 634 (hardcopy) Suo motu complaint no.

I nene-CnG-Z6SS-Z0Z} viii. to Sh.

J.S.

Sindhu, Executive Engineer (MonitoringJ, or any other designated officer if appointed.

15, However, the llowed the colonizer to raise demand n their ready launched proj ects i.e.

LC- 4498, LC-37 59, LC-37 7 2 & Lc-4L7 B subject to the following conditions fulfilled by the colonizer as under: L To submit the detailed construction status report of the above said projects as and when the review meeting will be called by the department.

Page 10 of 15 ffi& rfllo qai HARERA GUI?UGI?AM To submit the details of cancellation of the allottees due to non_ payment of the demand as and when called by the department. l'o deliver the above said projects within the stipulated time period as per the affordable group housing policy 201. olicy 201.3 amended time to time.

To strictly follow the guiderines of the affordable housing policy 2013 amended time to time.

And accordingly, the Authority amended its order of de-fr-eeze dated L9.09.2022 to the extent of the conditions mentioned above.

16.And whereas the promoter failer it the compliance report of the conditions mentioned in the o of the bank accounts of the project, the Authority had is a show cause notice dated 1,4.06.2023 to the promoter as to why pe penal proceedings under Section 63 of the Act of 2.

3.

2016 shall not be initiated against them for non-compliance of conditions mentioned in the de-freeze of the bank accounts order dated L9.og.z0zz, and the bank a not be freezed again.

1'7.|n view of the fact that the promoter has diverted the funds cleposited by allottees from the RERA account unauthorizedly and has failed to bring back the diverted funds even after rnore than 10 months, and no worl< on si[e was in progress and progress on site was found to be s-7o/o as per the report submitted by the concerned planning executive, the Ar-rthoritv in the proceedings dated 03.07.2023, decided to freeze the banl< accounts of the project again The matter was fixed for next clate of hearing on 17 .07 .ZO 23.

18.0n 17.07.2023, sh.

Amit Singh (Manager Legal) and Sh.

Alakh Niranjan were present on behalf of the promoter.

Sh.

Chetan Prakash Gaur [Advocate) and Sh' Arvind Punia (Branch Manager) were present on behalf of Axis Banl<, The AR of the bank submitted the statement of the bank accounts ol the project and other related documents in the Authority.

The matter was fixed for further proceedings on 1,4.o}.zoz3.

0n 1,4.08.2023, as the coram was not complete, the matter was adjourned to 21,.08.2023.

Page 11 of 15 L1SER& GURUGRAM lg.Intheproceedingsofhearingdated2L,oB,2o23,itwasobservedbythe Authoritythatthepromoterhadneithercompliedwiththeconditions mentioned in the order for de-freezing of bank accounts nor appeared before the Authority on the date n the date fixed for hearing' Therefore' on account of omissions on the part of the promoter in discharge of his obligations under theRealEstate(RegulationandDevelopment),Act,2016,theAuthority decidedtoinitiateproceedingsunderSectionT&BoftheActof20t6 Accordingly, a show cause notice for revocation of registration dated 06.09,2023 was issued to the promoter with an opportunity of hearing on 25.09.2023. ,,,, -r. " , e was Present on behalf of the 20. ln its proceedings dated 25'09'2021',no one was presetrL uIr Lrsrrqrr l --^*^I^r I+ r^'.c .'hcarrrcd hv the Authority that during the forensic audit of promoter.

It was ob ^-Aitntar hrrl rrinlated various provisions of the Act of the proiect that the''Promoter 20l,6.Furtherthepromoterisnottakinganyconcretesteptowards completion of the project and the Authority has already received various nPletion of Project' complaints [rom the allottees regarding non-con Tlrerefore,tlreAuthority,keepinginviewtheinterestofallotteesfor handing over of their units deemed it appropriate that before taking any decision regarding revocation of registratiot-t, a preliminary techno- economic analysis of the project be got conducted through an expert within ! - -! !^ L^ ^^*nlaforl a month to determine t to be comPleted r was again directed to rights in the Project.

21.A meeting was held with officials of the National lnstitute of Financial Management, Faridabad to discuss the matter on 30'10'2023' Further' vide tlie cornmunication dated oz.1t.zo23, the Director DTCP' Haryana' decided to award consulting assignment on financial aspects relating to licenses grantedtoMahiraGroupinHaryanatotheNlFM'TheAuthoritysharedthe details of the projects pertaining to the promoter with the National Institute of Financial Management vide letter dated L9'12'2023' with the existing resources availal restrain from creating any further Page 12 of 15 WHARETA ffi oUnUGRAM 22. nUGRAM 22.Itwas decided by the Authority to afford final opportunity of hearing to the promoter before revocation of the registration of the projects in continuation of the notice dated 06.09.2023 as none was present on behalf of the promoter during the said hearing.

The said notice was issued on 21,.02.2024 for a hearing on 11..03.2024.

23.0n 1'1.03.2024, shri Pintu, Director [no authority Ietter was produced by him to enable him to appear on behalf of the company) appeared on behalf of the promoter along with Advocate Shri Rishabh Gupta, Neither the director nor the Advocate had an adjournment without any say in the matter except seeking ly was submitted to the show cause notice.

24.l'he Authority obse s not only committed brazen violation of the Act of 20t6lt r breach of faith with respect to the innocent allottees who invested their hard-earned money into the project in the hope of obtaining an affordable home.

Many such allottees are suffering irreparable harm as they are living in rented accommodation and are paying EMIs to the banks.

The respondent promoter is a persistent defaulter and has defied and disregarded the lawful directions of the Authority.

25.

The Authority after going through the above factual matrix of tlier matter and cletails brought on record in the foregoing paras, is satisfied that the promoter has willfully violated the provisions of Section 4[2)[l)[d), 14(Z)(ii), the Haryana Real Estate Reguratory Authority, Gurugram (Quarterly Progress Report) Regulation s,201.8 and the Haryana Real Estate Regulatory Authority, Gurugram Real Estate Banl< Accounts for the Registered Projects Directions ,201.9.

The prontoter has further unlawfully diverted the amounts deposited by the innocent home-buyers into its own related companies, In view of the above, the Authority deems it l'it to revoke the registration of the project "Mahira Homes 634,, issued to Mf s czar Buildwell Pvt.

Pvt.

Ltd. [Now known as Mahira Buildwell pvt, Ltd,) vide Page 13 of 15 HARERA accounts shall freeze the a further directed under iJro *----otr.o project till further orders' lt is the Act of 2076 that the GURUGRAM Registration No.

04 of 2o2o dated 20.01"2020 under the provisions of Secrion 7[1)(a),[bJ and [d) of the Real Estate [Regulation and DevelopmentJ Act, ZO | 6,Haryana Real Estates (Regulation and Develo pment) Rules, 2017 and Regulations of the Haryana Real Estate Regulatory Authority' Gurugram.TheAuthoritydirectsunderSectionT(a]ta]oftheActof2076 that the promoter shall be debarred from accessing its website in relation to that project and the name of the promoter shall be specified in the list of defaulters on the Authority's website.

It is further directed under Section 7ta)(c) of the Act of 20L6 banks holding the Project bank respondent Promoter or anY of it ned from removing anY email id & contact each allottee and I UJPLrrruLrrr yr vrrrvLv -, --- o material from the site of the project' Z6.Thepromoter is further directed to submit within a period of three weel<s certified coPies of : 1.

ComPlete list of 2.

ComPlete set of sa working drawings and structural drawings includin$ the drawing for services and common facilities.

The list o[ contractor/service providers engaged for completion of worl<onsitealongwithacopyoftheworkordergiventoeach contractor/service provider and detail of amount already paid to them.

Bank account statements of the project duly certified by the authorized director of the Promoter company' 27.

Further that the promoter shall continue to remain liable for his obligations under section !2,14 and LB of the Act of 2076 and the above revocation is Page 14 of 15 ffi ,id$i TE&<,P mqir uqi\ HARERA M GURUGI?AM without prejudice to the right of the Authority to initiate penal proceedings against the promoter under section 63 of the Act of 2016. t of 2016.

A copy of this order shall be endorsed to all other Real Estate Regulatory Authorities of the States and Union Territories of the country.

I RERA-GRG-2655-2022 w,i^!L,ffi Member, HARERA Chairman, HARERA nieev Klxfar Arora) Member, HARERA Page 15 of 15