Haryana-Rera orders audit of project stuck since 2018

GURUGRAM: The real estate regulatory authority (Rera) in Haryana has ordered a forensic audit of a housing project in Sohna and issued a notice to the developer for submitting all information related to it.
The authority said a daily penalty of Rs 50,000 would be imposed on the builder if it failed to submit the required information.
The Rera observed that the ILD Arete project - launched in Sector 33 of Sohna in 2013 - was only 60% complete and two of eight towers had not even been started. The project has around 550 flats, which were to be handed over in 2018. The authority also directed the forensic auditor to submit a report on the project in 10 days. The realtor was told not to create any third-party rights on the unsold inventory.
"The authority... hereby decides to issue a showcause notice as to why a penalty of Rs 50,000 per day be not imposed on the developer for continued default for not submitting information," the order, issued by H-Rera chairperson KK Khandelwal on Friday, read. After going through the files related to the project, the RERA chairperson observed that there was no progress in work in the past four years. "The allottees are feeling cheated and disturbed about the commitment made by the promoter time and again on recommencing held-up construction," it noted.
Rera said its proceedings in the case were "paralysed" repeatedly in the absence of requisite information from the realtor and it was left with no choice but to order an audit.
The forensic auditor, according to the order, will check details of the sold flats, and verify the addresses and contact numbers of the allottees and the amount collected from them. The auditor will also check for any loans. "The project land and unsold inventory are attached and a public notice has been issued. Also, the bank accounts of the project have been frozen and intimation sent to banks," the order stated. Asked about the order, Khandelwal said, "We gave adequate opportunities to the promoters to finish construction and hand over the units to allottees, who have been waiting for years and have paid the amounts. We ordered the forensic audit as the last choice for extracting information."
A spokesperson for the developer said, "We are working with the authority and the buyers' association to work out a resolution plan. The order is under review and we will comply with the directions mentioned in it."