Haryana Rera: Lender needs nod from 2/3 buyers at auction project | Gurgaon News
The lender, the order adds, cannot sell the land or project to recover money without obtaining H-Rera’s permission and the consent of two-thirds of the buyers.
The order was made by KK Khandelwal, chairman of H-Rera’s Gurugram bench, in a disputed matter between Deepak Chowdhary and PNB Housing Finance Ltd. He strongly emphasized that the rights of beneficiaries are not subordinate to those of a bank or financial institution, and therefore, if a lender did not ensure that the funds were used for the purpose for which they were given, it could not be authorized to replace the rights of the assignees (house buyers).
Citing a judgment of the Supreme Court (Bikram Chatterjee v Union of India), Khandelwal said in his judgment: “As held in the above judgment of the Supreme Court, if there has been misappropriation of funds, banks cannot be allowed to sell the flats and deprive the beneficiaries of their lifetime savings.”
The H-Rera case was intended to implicate Supertech, which took out a loan of Rs 275 crore to complete its housing project, Supertech Hue, in 2017, by mortgaging the title deeds and receivables of home buyers in the project.
However, Supertech did not repay the loans. The company’s CMD RK Arora said that since the lender, PNB Housing Finance, would take most of the homebuyers’ receivables as installments for loan repayment, they had virtually no money left to continue the work. of construction. As construction slowed, home buyers also stopped paying their installments. According to the RERA law, 70% of receivables must be allocated to construction.
PNB Housing Finance declared Supertech in default and put the project up for auction online in July under the terms and conditions of the loan. A beneficiary, Deepak Chaudhary, then approached H-Rera. The regulator suspended the electronic auction because the lender failed to get its prior approval and consent from two-thirds of the 950 homebuyers who invested Rs 328.19 crore in the project.
To protect the interests of the beneficiaries, the Khandelwal order said that PNB Housing Finance must make all necessary disclosures about the liabilities of the project so that the developer taking over is fully aware of them. The new promoter will have to take over the liabilities. Supertech, according to the order, would continue to be responsible for paying “expenses” and criminal charges owed at the time of the transfer.
Khandelwal said about 15,000 beneficiaries in Gurugram are facing a situation where banks have taken over projects as developers have failed to repay loans taken against land or building projects. He also said that it was a particular trend in the real estate industry for developers to mortgage their project as well as claims on sold/unsold inventory to banks in order to obtain bank loans to fund construction costs. “But when these developers fail to repay the loans taken out, the banks directly auction residential or commercial properties that have been pledged with them to recover loans from borrowers by invoking the SARFAESI Act of 2002,” he said. he declares.
Such auctions, he said, cause anguish and distress among the beneficiaries as there is no recognition of the huge investments they have made to buy their homes. “The future of these beneficiaries is in utter darkness and darkness. These aggrieved beneficiaries are doomed to languish for their own hard-earned money,” he said.
Khandelwal clarified that H-Rera is in no way against the auctioning of real estate projects by a lending institution to secure repayment of the loan amount, but they should go through the mandatory process of seeking approvals.