The Haryana Real Estate Regulatory Authority (H-Rera) has issued arrest warrants against two directors of CHD Developers for their failure to refund the paid-up amount of over Rs 1 crore to a homebuyer in CHD Vann residential project in Sector 71 and disobeying the regulator’s other directions.
In its order, the Gurgaon bench of H-Rera has asked the police commissioner to arrest the two directors—Gaurav Mittal and Varinder Singh—and produce them before the regulator’s adjudicating officer. The order, dated September 30, was uploaded on the Rera website on Thursday.
The complainant in the case, Abhineet Agarwal, bought a flat for Rs 1.11 crore in CHD Vann. in 2015. In 2019, he moved H-Rera, seeking refund, citing the developer’s failure to give him the possession of his flat as per schedule. On February 18, 2021, the Rera bench ordered the developer to refund the amount.
Later, the two CHD directors were called by the adjudicating officer to file an affidavit, stating particulars of assets, through notices dated October 6, 2021 and February 18, 2022.
The developer has neither refunded the paid-up amount to Agarwal nor filed the affidavit, “leading to intentional disobedience of the order of the adjudicating officer”, according to the Rera’s latest order.
“By exercising powers under Section 51 read with order 21 of the Code of Civil Procedure 1908 and Section 40 of the RERA Act 2016, the authority has authorised the commissioner of police to arrest the two directors and produce them before the adjudicating officer,” said H-Rera chairman KK Khandelwal.
Manish Patni, the lawyer for the homebuyer, said, “This arrest warrant against the builder Is a welcome step. Many homebuyers in this project are suffering.”
“However, the bigger issue that remains is the resolution for the larger group of homebuyers who continue to suffer. There is evidently a collusion between the bank and the builder with subvention schemes repeatedly extended beyond even the promised date of possession,” he added.
A spokesperson for CHD Developers said, “H-Rera’s order has come after the company moved the National Company Law Tribunal for insolvency and appointment of an interim resolution professional. The regulatory authority’s court was not aware of the NCLT order. We have filed a reply and apprised the H-Rera court. Also, Mittal and Singh are no longer the directors of the company.”