EOW registers FIR against directors of CHD Developers for cheating buyers

GURUGRAM: The Economic Offence Wing (EOW) of Delhi Police have registered an FIR against eight people, including the directors and managing director of CHD Developers and Roots Developers, for cheating homebuyers of their under-construction residential project CHD Vann in Sector 71 of Gurugram.

The case has been registered against Rajinder Kumar Mittal and Gaurav Mittal of CHD Developers and Roshni Devi and Dharampal of Roots Developers under sections 420 (cheating and dishonestly inducing delivery of property), 406 (punishment for criminal breach of trust) and 120B (punishment of criminal conspiracy) of the IPC.

The project – CHD Vann – was launched by CHD Developers in 2014 and the possession was due in 2017.

In their complaint, the homebuyers alleged that the developer collected around Rs 224 crore from 250 homebuyers, but spent only Rs 80 crore for buying land and construction work. “Despite paying more than 80 per cent of the total amount, the project is still incomplete and the work on the project has stopped three years ago,” said SK Malik, a complainant.

“The developer fleeced and siphoned off our hard-earned money on the pretext of delivering us our dream house, and are now planning to leave the country to evade any legal action,” the complaint reads.

However, the spokesperson of CHD Developer said the project is cash flow positive. “Due to real estate circumstances and Covid-19, new sales are not happening. There is no diversion of funds. It is delay of possession. We are raising funds and construction will start very soon,” he said.

Out of 569 flats, including 101 EWS units, in the project, the developer had a share of 295 flats as it is a joint venture project and has already sold 250 flats on an average price of Rs 1.15 crore, a buyer said.

“My father retired in 2011 and wanted to buy a house. He gave me half of his retirement money and rest I paid from my savings and booked a flat in CHD Vann in 2014. For last three years, the builder has stopped construction. I am paying rent as well as the EMI. I have also lost my job due to the pandemic,” said Another buyer Raju Gautam adding that the Haryana government should take action against the builder and get project completed.