Status as on- 28/12/2020

The IRP appointed by the NCLT, where the insolvency case was filed in 2019, has filed a police complaint against the land owners. As the issues related to the project were pending before different courts, police are verifying the facts for further comprehension.

Background

In October 2019, the developer of Today Homes’ Canary Greens project in Gurugram filed for bankruptcy, leaving behind more than 500 disgruntled buyers. But, this was not the worst they could have seen. In the morning of 11^th August, 2020, a group of villagers, from whom Today Homes got land, took physical possession of the project and put up a notice at the gate of the nearly fully booked but incomplete housing society proclaiming the land as theirs and anyone entering the compound without their permission will be trespassing.

According to general secretary of CGBWA, they have been running from pillar to post for the past 4-5 years to get justice, but all the complaints to different agencies have fallen on deaf ears. They were supposed to get possession of the flats in 2014, but still waiting and now, the so-called original land owners have taken possession of the incomplete project.

Now, the IRP, Nilesh Sharma has filed a complaint with police for registration of an FIR claiming that land owners had voluntarily entered into a ‘development agreement’ with the builder and also executed an irrevocable power of attorney. Also, the rights for marketing, promoting and selling of flats were given to Today Homes under contractual terms. Later, in complete violation of the contractual obligations, the land owners revoked the power of attorney and thereby breached the agreed terms and conditions.

Chaos Among Homebuyers and Land Owners

The homebuyers claimed that the developer had collected more than 500 crore from them. Around 520 out of the 583 flats in the project have already been sold collecting 80-90 lakh rupees from each homebuyer. 

“The sequence of events strongly indicates it was all pre-planned. The promoters have siphoned off all our hard-earned money,” said Rajiv Goel, President of CGBWA.

The original owners, who are the residents of Berhampur village, now sector 73, contended that they had collaborated with the developer on terms to build a condominium on half of the 20-acre land and residences for them on the remaining portion. Also, the land is still registered in the villagers’ names. Moreover, according to the agreement with the builder, the latter was supposed to acquire the license, pay all government fees and develop the project.

The owners said that they went into arbitration when the developer failed to fulfill its promise and got a decision in their favour in December, 2017. Then, it was challenged by the developer in a Gurugram court and in February, the court’s judgment also came in their favour.

Conclusion

Therefore, the above-mentioned case reflects extreme ignorance and uncertainty from the legal perspective revealing the cavities among legal procedures which are being used by the malafide people for personal gain in real estate sector. This gap between man and law needs to be abridged to dilute such chaotic situations among the parties to contract. Also, it is necessary to keep in mind the protection of rights and interests of homebuyers as well as the land owners for a smooth development of the real estate sector.

Disclaimer – The above article is based on interpretation of the related judicial pronouncement and related laws which may differ from person to person. The readers are expected to take expert opinion before placing reliance on it. For more information, please reach us at support@centrik.in or call us at 8383011629