In an issue related to misappropriation of allottees’ money by the promoter in connivance with his lender, the the Haryana Real Estate Regulatory Authority (HRERA) has directed the Gurugram Police to register a criminal case against lenders and initiate investigations against them.
HRERA Gurugram Chairman K.K Khandelwal, in a press conference, said that directions had been issued to the Commissioner of Police, Gurugram to register criminal case against M/s Indiabulls Housing Finance Limited, M/s Industrial Finance Corporation of India Limited and M/s PNB Housing Finance Limited for misappropriation of crores of rupees deposited by the allottees for the completion of the projects namely Araville, Basera, Hues and Hill Town in Gurugram and violation of the statutory provisions of RERA, 2016.
He said that the Authority has taken a serious note of the fact that M/s India Bulls Housing Finance Limited, M/s Industrial Finance Corporation of India Limited and M/s PNB Housing Finance Limited had fraudulently and arbitrarily withdrawn entire amount of the receivable deposited in the ‘RERA Account’, which is a flagrant violation of section 4(2)(l)(D) of RERA, 2016.
According to Dr. Khandelwal, this provision has been incorporated in law to address the mischief earlier being committed by unscrupulous builders to divert amount realised from the allottees to other projects or for different purposes other than the project for which amount has been deposited by the allottees.
As on now, the law provides that 70% amount realised for the real estate project from the allottees has to be kept as a reserve and can only be utilised after the promoter has paid and incurred expenditure on cost of construction and land cost.