News & Media

October, 20

HRERA vs Sare Homes Case

  • HRERA vs Sare Homes Case
Haryana Real Estate Regulatory Authority (HRera) has passed an interim order allowing homebuyers under the Association of Allottees (AOA) to take over the Sare Homes project in Sector 92. The regulator passed the order based on the mitigation plan submitted by the project’s monitoring consultant. The order said the AOA will approve the plan and directly monitor construction and completion of the project. It also directed that all future receivables and funding will be first utilised to complete the project and secured creditors will have the right to recover their money only after the project’s completion. The order, passed by HRera chairman K K Khandelwal, directs the RWA to conduct a meeting of all its members to discuss and arrive at a consensus on the mitigation plan submitted by the monitoring consultant, and thereafter submit its resolution plan and furnish an undertaking that it is to take over the flats on an “as is where is” basis. For conducting the meeting, a committee will be formed, and the members will include the RWA president, monitoring consultant, one person each from the AOA and the authority. Payment of salaries to employees and guards, professional fee to the monitoring consultant and the financial auditor firm will be made in line with rules. The counsel for the lender, Alchemist, agreed to the directive on payments, but had strong reservations towards payments of fee of lawyers engaged by the promoter. The regulator directed that the payment of professional fee to the lawyers engaged by the promoter can be put in abeyance while the remaining payments are released by the bank. In case of non-compliance with the order, the regulator can initiate penal proceedings under Section 63 of the Real Estate (Regulation an Development), Act 2016.