DTCP i.e. Haryana’s town and country planning department cancelled the licenses for 15 real estate projects across the state. This is a big move particularly after the National Building Construction Corporation i.e. [NBCC] took over a couple of projects by private players in the real estate sector of Noida and this scene is likely to be seen in near future also to minimize the hindrance that homebuyers have to face particularly due to delayed possession.
DTCP took over 15- projects although none of these are equally disastrous as that of the projects took over by NBCC in Noida some time back. These 15-projects include both residential and commercial and nine out of these are located in Gurugram, three in Karnal, two in Faridabad and one is in Hissar. Most of these projects fall under small and medium-sized. The officials have also taken securities related to the projects into custody in order to complete them as per requirement.
The developers have an outstanding due of nearly Rs. 200 crores as External Development Charges [EDC] for their projects and all of these projects are stuck at different construction stages. Thus, the licenses of these developers have been cancelled on the orders of Jitender Sihag, DTCP’s chief town planner. The projects have been taken over by the director DTCP and the developers have been restrained from sale, purchase and any other transaction over these projects a senior official at Town Planning said.
According to the official, the developers have been given 60 days-time to appeal. The license can be reviewed if the developers clear off the outstanding dues in time as the Town and Country Planning Department can seize the bank guarantee and other assets of the developers in case they fail to clear off the pending dues.
Although, the buyers need not feel cheated as the Government will either pay the same amount of money they have invested in the project else will offer the space they have booked. These actions will be taken only after the buyer is able to produce the agreement they have entered into with the developers. The entire invested money in these projects will be recovered from the bank guarantee and other assets of the builder.
Among these 15 projects, one is a commercial complex located in Sector 110 and covers 10.25 acres of land for which the license is valid till August 22, 2019.