Crisis in Indian Real Estate: SC Demands Answers on Deficient Developers
The Supreme Court has sought details on action taken against real estate companies found deficient in Haryana's affordable housing scheme, including Mahira Buildtech.
Real EstateIndian Real EstateAffordable HousingHaryanaMahira BuildtechSupreme CourtReal Estate MumbaiJul 28, 2024
The apex court has asked the principal secretary, Haryana town and country planning department, to file an affidavit with answers to several queries. These include the number of licenses granted for affordable housing schemes in Haryana, including the national capital region, over the last 10 years, the estimated cost of each project at launch, and the salient features of any tripartite or other agreement between the builder-cum-developer, homebuyers, and banks/financial institutions.
The court has also inquired about the original drawings of each project, whether they were approved by the town and country planning department, and if so, how many times they were amended or modified after approval. Additionally, the court wants to know what dedicated machinery is in place to monitor the progress of these projects, test the quality of construction, and determine the cost ratio with the quality and total area of construction.
In the case of Mahira Buildtech, the developer's parent company and its sister concerns have been booked for cheating, forgery, and contravention of provisions of the Haryana Development and Regulation of Urban Areas Act and conditions of real estate development license. Homebuyers in Gurugram have been protesting against the developer company for failing to deliver possession of houses and harming their investments.
The Enforcement Directorate (ED) has also been asked to provide details of Enforcement Case Information Reports (ECIRs) registered in cases similar to the one against Mahira Buildtech. The ED has been tasked with explaining if it has registered ECIRs in matters where FIRs regarding offenses under sections 406, 420, 467, 468, and 471 of the IPC have been registered at the instance of homebuyers, state, or financial institutions.
Information
Mahira Buildtech is a real estate company that has been accused of cheating and forgery. The company's parent company and its sister concerns have been booked by the authorities for their role in deceiving homebuyers.
Haryana Town and Country Planning Department is a government agency responsible for regulating urban development in the state of Haryana.
Enforcement Directorate (ED) is a law enforcement agency responsible for enforcing economic laws and preventing money laundering.
Keywords Tags real estate, indian real estate, affordable housing, haryana, mahira buildtech, supreme court
Frequently Asked Questions
What is the crisis in the Indian real estate sector?
The Indian real estate sector has been plagued by numerous issues, including delays in project completion, fraudulent activities by developers, and poor quality of construction, leaving homebuyers in a state of distress.
What is Haryana's affordable housing scheme?
Haryana's affordable housing scheme is a government initiative aimed at providing affordable housing to low- and middle-income groups in the state.
What is Mahira Buildtech?
Mahira Buildtech is a real estate company that has been accused of cheating and forgery. The company's parent company and its sister concerns have been booked by the authorities for their role in deceiving homebuyers.
What is the role of the Enforcement Directorate (ED) in the case?
The ED has been tasked with providing details of Enforcement Case Information Reports (ECIRs) registered in cases similar to the one against Mahira Buildtech.
What is the Supreme Court's role in the case?
The Supreme Court has sought descriptive details of action taken against real estate development companies who were granted licenses under Haryana government's affordable housing scheme but were found deficient.
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