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Punjab and Haryana HC dismisses bail plea of builders, says property frauds ‘double whammy for innocent buyers’

An FIR was registered in May 2019, at Hisar against three directors of Aarcity Builders Private Limited (ABPL), who allegedly in collaboration with Hisar Real Estate Private Limited, had floated a project called Hisar Heights, which was later renamed as Regency Park comprising 639 flats and 39 villas.

Written by Jagpreet Singh Sandhu | Chandigarh |
Updated: July 25, 2021 8:44:15 am
The company allegedly failed to deliver the possession of the apartments and villas within the stipulated period of 39 months. (Representational image)

Observing that it is a “double whammy for the innocent buyers” because justice in property frauds is a “long-drawn process and uncertain”, the Punjab and Haryana High Court has dismissed the anticipatory bail plea of three directors of a construction company, accused of cheating several people by not delivering apartments in a society at Hisar in a time-bound mannner.

An FIR was registered on May 22, 2019, at Hisar against three directors of Aarcity Builders Private Limited (ABPL), who allegedly in collaboration with Hisar Real Estate Private Limited, had floated a project called Hisar Heights, which was later renamed as Regency Park comprising 639 flats and 39 villas. The company allegedly failed to deliver the possession of the apartments and villas within the stipulated period of 39 months. The audit report got prepared by the Haryana Real Estate Regulatory Authority (HRERA) shows that the company has misappropriated the buyers’ money by diverting it to other companies. There are also allegations about forgery of the account books.

The accused, Saroj Rani and others, contended through their counsel that they are not the directors of ABPL. Therefore, no offence is made out against them, and the FIR is a pressure tactic adopted by a few of the allottees to get the outstanding dues waived. It was further submitted by the petitioners that Hisar Real Estate Private Limited (HREPL) was a collaborator with ABPL for the purpose of procuring land and clearances. Therefore, necessary permissions were granted in favour of HREPL, except for the RERA registration in favour of the ABPL. The petitioners are not the directors or the shareholders of HREPL and the same is not a sister concern of ABPL in which the petitioners are stated to be the directors.

It was also submitted that the construction of the villas is complete and their possession has been handed over to the allottees. The construction of a large number of flats also stands completed. Only a few of the candidates are pressuring the petitioners so that the company could not ask them to pay their outstanding dues.

After hearing the matter, the bench of Justice Harnaresh Singh Gill said, “It is a double whammy for the innocent buyers because justice for such fraud like the present one, is a long-drawn process and uncertain, due to the complex nature of the dispute.”

The HC ruled the petitioners are required for custodial interrogation, and dismissed the anticipatory bail pleas of the accused.

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