HRERA freezes bank accounts of OSB builder

GURUGRAM: Taking a suo motu action, the Haryana Real Estate Regulatory Authority (HRERA), Gurugram, issued an order on Friday instantly freezing the bank accounts of three affordable group housing (AGH) projects of real estate promoter Ocean Seven Buildtech (OSB) Private Limited after noticing several violations of the Act 2016.

The Authority has also marked a forensic audit of accounts and restrained the promoter from creating any third-party rights as well. The Authority's action came in the wake of the cancellation of the licences of all three projects by the Department of Town and Country planning (DTCP), Haryana

"Taking cognizance of the matter and in the exercise of the power vested under Sections 35 and 36 of the Real Estate (Regulation and Development) Act 2016, the Authority, hereby, issues directions to protect the interest of the allottees to freeze the bank accounts and any other accounts related to the projects in question.

The Authority also directs the bank manager not to allow any withdrawals from these accounts till further instructions from the Authority," said the order.

All three projects located in Gurugram include Expressway Towers at Sector 109 with an area admeasuring 7.5 acres, Golf Heights at Sector 69 with an area admeasuring 5.4125 acres and The Venetian at Sector 70, an area admeasuring 5.10 acres.

"The promoter is, hereby, also restrained from creating any third party rights in respect of unsold units and all the assets in the projects till further order from the Authority. And, an auditor is also appointed to conduct the forensic audit of the accounts of the projects and the promoter is, hereby, directed to provide requisite information as demanded by the auditor, forthwith," the order said further.

The Authority noticed the promoter did not submit quarterly progress reports (QPR) of the projects since the time of registration of the projects with the HRERA which amounts to a clear violation of Section 11(1) of the Act 2016 read with Rule 14(1)(d) of the Haryana Real Estate (Regulation and Development) Rules, 2017.

"Also, the promoter has not complied with the provisions of Section 4(2)(L)(d) of the Act 2016 by not submitting the annual audited accounts of the projects to date," the order said.

The Authority found the promoter violated the conditions upon which the registration certificates (RCs) were issued for the projects.

"As per the RC conditions, the promoter was mandatorily required to submit the documents related to environmental clearance, fire scheme approval, airport height clearance, forest clearance NOC, approved service plan and estimates within the three months but the promoter did not comply with any of these conditions," said the order.

RCs were issued to the promoter in subsequent years of 2016, 2018 and 2019, respectively.

"In view of the continuing violations, it is amply clear that the promoter is not only defaulting in the discharge of its obligations under the Act 2016 but at the same time violating the provisions of the Haryana Development and Regulation of Urban Areas Act, 1975 also. And, the Authority is duty-bound to protect the interest of allottees and make sure everyone follows the Acts in letter and spirit," said the order.