The Real Estate Regulatory Authority (HRera) has issued a show-cause notice to Ramprastha Promoters & Developers Pvt Ltd, cautioning them to adhere to outstanding orders or risk civil imprisonment. This action was taken just days after the Enforcement Directorate (ED) apprehended the company’s directors, Arvind Walia and Sandeep Yadav, in connection with a Rs 1,100-crore money laundering case that has affected over 2,000 deceived homebuyers.
Show cause as to why you, as promoters, should not be confined in civil prison — under Section 40(1) of the Real Estate (Regulation and Development) Act, 2016 — for a period not exceeding three months for your failure to comply with the Authority’s directives, states the strongly-worded notice issued by HRera on Tuesday.
The next hearing is scheduled for August 8. The HRera Gurgaon bench had previously issued several orders — dating back to 2020 — instructing the refund of approximately Rs 3 crore to complainants who were denied possession despite having booked homes over a decade ago. Nevertheless, the promoters have consistently failed to adhere to these rulings.
According to ED investigations, Ramprastha amassed around Rs 1,100 crore from more than 2,000 homebuyers across various projects such as Edge, Skyz, Rise, and Ramprastha City, situated in Sectors 37D, 92, and 95 in Gurgaon. Possessions were promised within three to four years of the project launches (2008–2011), yet even after 14 years, the majority of buyers have not received their properties.
In light of the ongoing non-compliance, the HRera court, on July 29, issued a production warrant to the Bhondsi Jail authorities for the two directors, instructing that they be presented before the Authority on August 5. As both are currently in ED custody following their arrest on July 21, the production order lends legal significance to the concurrent proceedings now taking place in the money laundering case.
The ED has also revealed that approximately Rs 140 crore was unlawfully diverted to group companies under the pretense of land advances and other internal transactions as well.
During search operations, authorities seized Rs 18 lakh in unaccounted cash, six luxury cars, froze 34 bank accounts and locked down assets worth Rs 681.54 crore.
