No clarity on funds to complete Golf Avenue, say CHD homebuyers

GURUGRAM: The homebuyers of CHD 106, Golf Avenue in Sector 106 are unsure about the funds required for the completion of the project after the Haryana Real Estate Regulatory Authority (HRera) ordered a forensic audit of the accounts of the developer and floated the possibility of takeover by the buyers.

In a recent order, HRera ordered for a forensic audit by Currie & Brown, an international consultancy firm, which will submit cash inflow and outflow of the project from beginning till now, as well as the cost estimates for its completion.

The regulatory authority also directed that the auditor submit a mitigation plan for completion of the project. The builder couldn’t be reached for a comment.

While a few homebuyers said once allottees take over, four towers will be completed for handover within six months, other said the lack of funds would be the main hurdle in project completion.

CHD Developers had launched a housing project under Empire Realtech in 2011 — 106, Golf Avenue in Sector 106 — with a promise to offer possession by December 2016. The homes have, however, not been delivered yet. The promoter intimated the revised date for completion to HRera as June 30, 2021 at the time of registration in 2016.

On the call of the developer, a meeting was held with six representatives of the buyers’ group, where they insisted that the developer deposit Rs 5 crore in an escrow account. The developer expressed his inability to deposit cash and in lieu agreed to transfer six unsold flats to the association.

Vishal Rekhi, a homebuyer, said: “The main issue with our stalled project is funds. There is nothing in the order suggesting infusion of funds. There is a requirement of at least Rs 35 crore, which has to be given by the builder. As an authority, Rera lacks teeth to force the builder to infuse funds.”

Jitender Pal, another homebuyer, added: “The developer has already collected over Rs 500 crore from homebuyers. At least 70% of this amount had to be kept in a separate escrow account and should have been used only for construction, which is not the case here.”

He said if the developer had followed the norms, the project would have been completed as cost of construction was just Rs 190 crore.

Savishesh Raj, who also bought a flat in the project, said the developer has claimed it will hand over around half a dozen units of unsold inventory in lieu of funds, but people are unlikely to invest in a stalled project. “We need liquid funds, but the HRera order mentions nothing on the matter. Only the National Company Law Tribunal can help the aggrieved homebuyers. We will pursue the case in the tribunal,” Raj said.