CHD Developers director has been booked on the direction of a local court for allegedly collecting money from buyers in the name of a real-estate project and failing to hand over possession to them.
The developer was accused of not completing the project despite several years of delay and taking most of the amount from buyers. The project, meanwhile, remained a ‘non-starter’.
A case was registered on the complaint of a buyer of the CHD VANN residential project in Sector 71. The buyer alleged that despite making repeated complaints to the police, no action was taken against the developer. Finally, the FIR was registered on the direction of the court.
However, the developer claimed that the project was delayed due to Covid-19 and other reasons beyond their control and now they are trying to revive the project.
Pawan Kumar Jain, a Sector 54 resident, alleged he was lured to purchase a 3BHK flat measuring 1,941 sqft in 2014 in the project. The payment was construction linked but the developer allegedly kept on raising demand from buyers and the complainant paid around Rs 50.5 lakh. The flat was supposed to be delivered in 2018. “The project was abandoned by the developer and there is no hope for completion of the project in near future,” alleged Jain, adding that no work is going on at the construction site.
Until now, the developer has not taken any steps to complete the project. He said the project has remained a non-starter and the developer is not disclosing the facts and not returning the investors’ money. Even the status of the land on which the project was supposed to be developed is not clear. In 2018, the developer closed its site office and removed its banner and poster from the land.
“We have been facing great financial stress due to a delay in completion of the project as we have to pay rent and interest,” said Jain, adding that during the visit to the developer’s office they were not allowed to meet the directors of the company. The office staff did not give any information about the construction schedule and timeline for completion.
The buyer also filed a complaint with HRERA. He alleged that the developer filed a statement with fake and frivolous facts that construction is in full swing, and the project will be completed soon. “The lie was exposed before HRERA and authority passed an order against the company,” said Jain.
“The company deliberately collected funds from clients to cheat and defraud them. It concealed facts, the actual position of project and the development of land/progress at the site, and took advantage of complainants honesty and faith,” said Jain.
On the direction of the court, a case was registered against CHD Developers and directors at Badhshahpur police station under section 420 (cheating), 406 (criminal breach of trust), 120B (criminal conspiracy) and 506 (criminal intimidation) of IPC.
Gaurav Mittal, managing director of CHD Developers, said the project was delayed to Covid-19 and factors beyond their control. “We are at a very advanced stage of the revival of the project,” said Mittal, adding that they will hand over the flats after completion.